Travis Perkins hit by shoppers' spending cuts

Wickes owner Travis Perkins today said consumers were cutting back on expensive kitchens and bathrooms amid sluggish recent sales.

The builders' merchant is seeing "relatively weaker" trends in big-ticket goods during the last quarter and tougher competition.

Its merchanting arm is faring better but is also slowing as trading comparisons toughen.

Chief executive Geoff Cooper said construction was on the mend but remains 20% down on historic levels.

"Corporates have come back but consumers are doing less DIY. Consumers are holding on to their money until we stop seeing headlines about cuts," he said.

Total group sales for the nine months to September 30 rose 6.0%. Shares in Travis Perkins closed on Friday at 864 pence, valuing the business at £1.8 billion.

The firm is trying to buy plumbing and heating company BSS for about £580 million to create the UK's biggest plumbing and heating trade and retail distribution business with a market share of 20%-25%, overtaking Wolseley.

The deal has been backed by both companies' shareholders but last month the Office of Fair Trading said it had extended the decision date on whether to give the deal the go ahead to October 19.

Travis Perkins said in July that it would offset an expected steep fall in public sector new build business because of government cuts with growth in other customer groups.