Posted 21st Nov 2018

Kingfisher sees drop in B&Q sales in Q3 2018

21st November 2018 - 11:10am
money matters, kingfisher, b&q, screwfix, performance, report, financial, kbb, kbbdaily

Kingfisher – the owner of Screwfix and B&Q – has reported a 0.7% drop in like-for-like sales for its UK operations in the third quarter of 2018 – reaching £1.3bn – noting that the closure of B&Q’s Homefit installation service earlier this year has affected sales for the DIY chain.

B&Q UK & Ireland reported a 2.9% drop in like-for-like sales in the period, including a 1.5% impact from the discontinuation of Homefit. In June, B&Q restructured its kitchen and bathroom service closed its installation service, resulting in the redundancy of 700 design consultants and installers.

Screwfix performed considerably better in Q3 2018, reporting a 4.1% rise in like-for-like sales with nine new outlets opening during the period. Screwfix’s turnover reached £442m in the period, while B&Q saw sales of £850m.

Overall, the Kingfisher group reported sales of £3bn in the third quarter, a like-for-like decline of 1.3%. The group noted that it is planning on exiting the Russian, Spanish and Portuguese markets to “focus on markets where we have, or can reach, a market-leading position”.

“We continue to make progress on our One Kingfisher transformation,” said CEO Véronique Laury. “We remain on track to achieve our key strategic milestones for the third year in a row, and increased our gross margin in the quarter.

“Transformation on this scale is tough, and we are operating in a difficult retail environment. We face challenges and we are addressing them. We are committed to our plan and to building a strong business for the long-term.”

Laury added: “As part of this commitment, we have taken the decision to exit Russia, Spain and Portugal. This will allow us to apply our strategy with more focus and efficiency in our main markets where we have, or can reach, a market-leading position and create good homes by making home improvement accessible for everyone.”

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