TRAVIS PERKINS PLC 
approved vaccines will be distributed and how our continued response to the pandemic.
effective they prove to be, or what further
measures may be introduced by governments to
mitigate the associated health, economic and
societal impacts. Tiered crisis response teams were mobilised before
the first UK lockdown to coordinate activity. These
teams continue to monitor the situation closely,
with regular oversight from the Board, and update
Central UK Government, and the devolved measures, advice and communications as required.
authorities in other parts of the UK, have deemed
the Group to be an essential provider to ensure
critical national infrastructure remains
operational and homes remain warm and dry. Any Colleagues have been regularly consulted with
change to this status would significantly impact throughout the pandemic and are empowered to call
? Detrimental our operations and results. out unsafe practices. Several incidents in recent
impact to months suggest that Covid-19 has been an influencing
health and factor both in terms of the physical and mental
well-being impacts to colleagues of adapting to changed ways of
? Adverse The pandemic may lead to a significant and working, and as a necessary area of focus which may
effect on prolonged impact for the Group in respect of: divert attention from more typical operational
operations, hazards. Organisation-wide safety stand down
financial ? Operational disruption resulting from high briefings were run in 2020 for colleagues to reflect
condition levels of colleague absence, attempts to and consider individual and collective actions that
and results contain an outbreak at a Group location or can be undertaken to take responsibility for their
further measures taken to contain virus own and each other's safety. Other major response
peaks, whether localised or national. This measures include:
could impact our ability to operate our
branch and distribution network, or provide ? Rapid changes to the network to enable
functional support to the business, if this contactless collections and socially distanced
cannot be delivered remotely. service.
? Pressure on colleagues to adapt to rapidly ? Enhanced hygiene routines and provision of PPE.
changing circumstances, ways of working and ? Supporting all colleagues able to work from home
resourcing levels, which may impact their to do so, which will continue for the
health and well-being. foreseeable future.
? Disruption to our supply chain, which ? Active, detailed management of cost and cash
operates across multiple territories. In flow, including the suspension of the 2019 final
addition to the proximate disruptive effects dividend, a 20% reduction in Board and Executive
of the pandemic, the supply chain may also be pay for three months and the deferral of rates
impacted by business closures and and VAT payments.
consolidation activity.
Regular communications to colleagues including a
Levels of consumer confidence in an uncertain weekly pulse survey and extended well-being support.
economic environment, which may adversely impact
demand for our products and services.
Changing customer & competitor landscape
Impact Risk description Risk mitigation
The evolution of customer behaviours has
accelerated through the pandemic and this is
expected to continue. Forced to move to more
remote transactions, customers looked for
digitally-enabled solutions. Whilst this drove an The Board is cognisant of the risks presented by the
immediate focus on our digital transaction changing customer and competitor landscape and
capabilities, the ability of these platforms to evaluates developments both in terms of threats and
meet customer demand and keep pace with opportunities for the Group. Competitor activity is
competitor developments will impact longer-term closely monitored, including potential consolidation
growth and delivery of our strategy. activity.
The process of digitisation introduces We have made significant progress in 2020 towards
alternatives beyond our traditional competitors digitising key customer journeys and building tools
and, through the move to more online purchasing, that complement our existing operations and enable
there is increasing price transparency. This puts customers to transact with us through channels that
pressure on the margin that can be achieved on best suit their needs. Initially focused on the
distributed products in some instances. General Merchant business, these tools build on the
existing high levels of digital engagement enjoyed
by the Wickes and Toolstation businesses.
The balance of delivered sales has moved
? Adverse significantly during the pandemic and our ability
effect on to develop this area and provide innovative High quality fulfilment of customer orders remains
financial fulfilment solutions will be a key the main service differentiator across Trade
results differentiator. Customers also increasingly value businesses. This is an area of ongoing focus for us
? Loss of the ability to procure services that complement and will combine with the digital enablement
market share their project, presenting us with both an initiatives to give better visibility and more
opportunity and risk to meet that expectation. choice to customers. The Group appointed a
Fulfilment Director in 2020 to focus these efforts.
Increased focus on delivery and fulfilment may
draw other new entrants into the market who We are able to use our sites flexibly to respond to
operate business models which differ changes. Alternative space utilisation models are
significantly from the traditional merchanting, possible, including maintaining smaller stores and
retail and online formats from which we currently implanting additional services into existing
operate. There is also an ongoing level of branches. The programme of restructuring announced
portfolio change among our more established in June 2020 progressed our existing strategy to
competitors. Both present potential threats to operate from fewer, larger branches with a greater
the leading market share positions of our breadth and depth of product range.
businesses.
Pricing strategies across the Group are regularly
These changes in the customer and competitor reviewed and refined to ensure they remain
landscape, individually or in combination, may competitive.
adversely impact the profitability of
branch-based operations, impact pricing
perceptions and, as a result, negatively impact
our overall performance.
Supplier risks
Impact Risk description Risk mitigation
Making decent returns is one of our cornerstones and
drives us to treat both customers and suppliers
fairly. We have established strong relationships
with our key suppliers and work closely with them to
We face a number of risks in relation to key agree contracts that are mutually beneficial. We
supplier dependencies and relationships, overseas conduct due diligence in line with our commitment to
sourcing and disintermediation, all of which responsible sourcing, and to ensure a continuous
could adversely impact upon ranging and price. supply of quality materials.
We are the largest customer to a number of our Where possible, contracts exist with more than one (MORE TO FOLLOW) Dow Jones Newswires
March 02, 2021 14:55 ET (19:55 GMT)
