Wickes plans new stores for 1998

Wickes, the troubled Do-It-Yourself retailer which is attempting to put last year's pounds 50m accounting scandal behind it, is to start a store-opening programme next year.

They will be the first new Wickes stores to open since the company unearthed the accounting irregularities which forced a rescue rights issue, a boardroom clear-out and the sale of entire overseas operations.

Starting in 1998, Wickes will open between five and 10 new stores a year for the next five years. This will take the total portfolio from the current 123 to a possible 173. No new branches are planned for the current year.

Bill Grimsey, chief executive, said the sale of the continental European operations, announced on Wednesday, "completed the final piece in the jigsaw", enabling the company to start looking at extending its UK stores chain.

Mr Grimsey was speaking at the Wickes annual meeting where he delivered an upbeat trading statement. He said that in the 17 weeks to 26 April same store sales were 14 per cent of the same period last year. Total sales were 20 per cent ahead, including the 13 new stores which opened in the first half.

Mr Grimsey said Wickes had been helped by the firm housing market and the good recent spell of weather. He would not comment on the group's margins, though it is thought that these have been affected by the renegotiation of supplier contracts following the uncovering of the accounting scandal.

Mr Grimsey said he had received no contact from any parties regarding a possible takeover. "We are not even thinking about that. We are concentrating on getting on with the job of being good retailers."

The upbeat trading statement pushed Wickes shares 12.5p higher to 178.5p. The buoyant mood also boosted other DIY-related stocks. Shares in Kingfisher, which owns the B&Q chain, and Boots, owner of Do It All, were both sharply higher. Sainsbury, which controls the Homebase chain, also saw its shares rise.

On Wednesday Wickes sold its European operation in Holland, Belgium and France to the French DIY operator, Bricorama.

With the South African business already sold, the deal leaves Wickes as a UK-only DIY operator.