B&Q sees improved results

B&Q owner Kingfisher has posted underlying pre-tax profit interim profits 13.5 per cent higher at £436 million, with Kingfisher sales up 2.7 per cent and retail profit up 8.7 per cent, in constant currencies for the six months to 31 July 2016.

The firm said in January that it had begun a strategy to boost annual profits by £500 million by 2021 by selling the same products in all the countries in which it operates, reducing costs and growing online sales more rapidly. Kingfisher has stores in France, Spain, Poland and Russia.

Sales for the six months were £5.479bn, up six per cent from £5.382bn.

B&Q, which has 308 stores, total sales declined by 1.9per cent reflecting store closures and sales transference (+4.6 per cent like for like) to £1,997 million.
Like for like sales of outdoor seasonal products were up 1.6 per cent while sales of indoor products, including showroom, were up 5.9 per cent.
B&Q is closing 15 per cent of space by the end of 2015/16. In addition to the 30 B&Q stores closed in financial year 2015/16 a further 22 stores were closed in the first half .

Chief executive Véronique Laury said the strategy is going according to plan following a rise in sales in the UK and Poland:

"It has been a productive first half. We have delivered a good 'business as usual' result with both sales and profit growth. Performance has been driven by Poland and the UK, especially Screwfix, and a stable profit performance in France. This has been achieved alongside managing the start of our ambitious transformation plan, based on creating a unified company where customer needs come first.

"In the UK, the EU referendum has created uncertainty for the economic outlook, even though there has been no clear evidence of an impact on demand so far on our businesses. In France we remain cautious on the short term outlook.

"Looking longer term, we are starting to build solid foundations to enable us to deliver our five year transformation, which is our key growth driver. We are making good progress on our strategic milestones for this first year and we are on track. The level of transformation activity will increase significantly, however given the expertise and energy of our colleagues we continue to feel confident about the challenges ahead."

The company is spending about £70 million this year and £100 million next year to harmonise products. 

Kingfisher said: "We have started unifying our offer, with the same products, presented everywhere in the same way. This will deliver significant customer benefits (newer products, higher quality, better sustainability, lower prices, simpler ranges, clearer merchandising and better packaging) alongside significant business benefits (higher sales, fewer SKUs, fewersuppliers, cost price reduction (CPR) and improved processes).

New competition for B&Q is on the horizon from Bunnings, which bought B&Q rivals Homebase this year.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

What's in store for garden retail in 2017?

What's in store for garden retail in 2017?

Impact of Brexit, inflationary pressures, houseplants gaining popularity and online market.

Growing media - Everything to play for

Growing media - Everything to play for

Exchange rate issues are likely to dominate the growing media market in 2017 as suppliers continue to innovate, Matthew Appleby reports.

What will be the key garden trends in 2017?

What will be the key garden trends in 2017?

Gardening trends for 2017 could include cacti, urban gardening, living walls and unusual foods, a round-up of reports from analysts and retailers has shown.

Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Garden retail Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. NEW: 2016 listing just published

Garden Centre Prices

GARDEN CENTRE PRICES w/e 16 November 2016
GARDEN CENTRE PRICES w/e 19 October 2016
GARDEN CENTRE PRICES w/e 21 September 2016

Pest & Disease Tracker bulletin 

The latest pest and disease alerts, how to treat them, plus EAMU updates, sent direct to your inbox.

Sign up here