2023 has been a successful year for the Group. We have delivered a third consecutive year of record sales, as well as exceeding our market-share goal of “One-In-Five by 2025”, two years ahead of its target.
The UK tile market splits into two broad sectors – domestic, accounting for around 55% of the market, and commercial, accounting for the remaining 45% (source: Mintel). The domestic market includes the repair, maintenance and improvement of residential properties and the commercial market includes commercial building projects including infrastructure, as well as new build residential property, including housebuilding. Within Topps Group, Topps Tiles and Tile Warehouse are largely focused on the domestic market, Parkside is focused on the commercial market, and Pro Tiler Tools serves trade customers and contractors who may be working across either or both of these markets.
The domestic tile market is large and offers long term potential – of the 23.7 million dwellings in England, the average age is around 71 years, giving a significant and growing need for repair, maintenance and improvement spend. UK housing prices are often a useful indicator of our market. In a rising market, home owners tend to feel more affluent and are more confident in spending money on their homes.
Our success in this market results from appealing to both designers and architects, with our quality and differentiated offer, and to contractors, who may require larger quantities of products, in short timescales. Our Parkside business is able to service both categories: we can leverage our access to differentiated product through our supplier relationships, as well as utilise the Group’s buying advantage and stock-holding position to support volume sales.