Focus DIY has revealed a 17% uplift in full-year EBITDA as it lays out plans for further stores in its new compact format.
The retailer said up to three-quarters of its 180-store estate could be remodelled to the “convenience” store format.
Its Congleton store in Cheshire, previously covering 30,000 sq ft, has been halved, and opened last week. The remainder has been re-let by landlord Bluemantle to M&S Simply Food.
The opening comes as the retailer reported a 17% rise in EBITDA to £17.7m in the year to February 21. Turnover fell 3% to £486.9m after a tough recession for home improvement retailers and severe winter weather. In the period, Focus also went through a CVA, enabling it to shed 38 stores as well as secure a refinancing from its banks.
In the Congleton store SKUs have been cut by 28% to 10,400. Sales per square foot are expected to rise 57%, while profits are expected to double. The rent on the store has almost halved, while rates and utility bills have halved. The landlord paid for the full £500,000 cost of the refit.