Kingfisher to build 200 more Screwfix stores

DIY retailer Kingfisher- which owns Screwfix, says it would build another 200 stores in the UK.

DIY retailer Kingfisher- which owns Screwfix, says it would build another 200 stores in the UKKingfisher currently has 412 Screwfix UK stores, which supply tools, plumbing and electrical equipment.

As part of previously announced restructuring plans, the company said it was on track to close about 60 B&Q stores by the end of its 2016-17 financial year.

Statutory pre-tax profits dipped 1.8% to £386 million in the half year to 1 August. Total sales fell by 4.8% to £5.49 billion. Kingfisher shares dropped around 2% in early trading.

“I am pleased that we have delivered a solid first half of the year,” said chief executive Veronique Laury. “There remains a lot to be done, however.”

Earlier this year Kingfisher announced a change in strategy that involved scaling back its B&Q stores while opening up new Screwfix outlets.

Other plans include cutting back on some of the 393,000 products sold across the company. Only 7,000 items – amounting to 7% of sales – are sold in at least two of Kingfisher’s operating companies.

The beefed-up Screwfix “continues to deliver strong growth” in the UK, Kingfisher said.

In the first half like for like sales at the chain rose 16.5% to £494 million. It said 60 Screwfix stores would be opened by the end of 2015-16.

Sales were driven by strong growth from trade desks for plumbers and electricians, digital and mobile growth, new and extended ranges, and new outlets, it said.

It added that a trial of Screwfix in Germany “has been well received”, with signs of repeat custom in store and online.

Like-for-like sales at B&Q rose 0.7%. The majority of the 30 B&Q closures planned for this year will fall in the second half, the firm said. Over two years, the restructuring is expected to cost it about £350 million.

The firm also runs the Castorama and Brico Depot chains in France and other countries. It announced two store closures in France, and one in Russia.

September 27, 2015  Tags: , , , ,   Posted in: Building Businesses, Business Growth, Business Win, Growing Business, Uncategorized

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