Plumb Center cuts: 800 jobs will go as 80 branches shut

The company is not yet saying which branches face closure. It has Plumb Centers in Wolverhampton, Walsall, Brierley Hill, Cannock, Smethwick, Kidderminster and Stafford, as well as a branch of Burdens in West Bromwich.

The shake-up, which will cost the firm £100 million, comes amid a challenging period in the UK, where it has seen a sharp slowdown in growth.

Wolseley said on Tuesday: "The closure of around 80 branches and one distribution centre is expected to lead to up to 800 job losses, the impact of which we will minimise through redeployment and attrition as far as possible.

"The programme is subject to consultation which will commence shortly and is expected to take 90 days."

The group employs 6,000 people in the UK and operates across 750 branches.

The firm said that in the UK, which accounts for eight per cent of its profits, the repair, maintenance and improvement markets had declined and growth was 'weak' as it flagged a challenging environment.

Wolseley said the restructuring, the result of a review, is expected to generate £25 million to

£30 million of annual cost savings when complete.

The group made the announcement alongside full-year results, which saw overall revenues rise 4.2 per cent at constant exchange rates to £14.4 billion. Pre-tax profit rose from a total of £508 million to £727 million, driven by the States, where it operates Ferguson and where the bulk of its business lies.

The shake-up will also see Wolseley close one of its four UK distribution centres, with its site in Worcester currently being looked at.

Patrick Headon, managing director of Wolseley UK, added: "The trends in our profitability have been disappointing and we need to take action to improve our customer proposition and the efficiency of our business."

Wolseley says it will spend £100 million on the UK business, focusing on just two brands rather than the 12 it has at the moment.

"One will be dedicated to the needs of medium and large specialist trade customers and one will be for small specialist trade customers.

The company said it would also improve its pricing, to make itself more competitive.

It will spend £40m over the next three years creating two different sorts of branches; a local network of 450 branches will offer local expertise while around 80 larger 'destination' branches, with more in-depth expertise, open seven days a week and each with a bathroom showroom.