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| B&Q owner lifts profit forecast amid strong demand for kitchens | B&Q owner lifts profit forecast amid strong demand for kitchens |
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| Kingfisher says garden accessories, outdoor paint and plants sold well because of good weather in the UK | Kingfisher says garden accessories, outdoor paint and plants sold well because of good weather in the UK |
| Business live – latest updates | Business live – latest updates |
| The owner of B&Q and Screwfix has upgraded its profit forecast after reporting strong demand for new kitchen ranges and garden products amid good summer weather. | The owner of B&Q and Screwfix has upgraded its profit forecast after reporting strong demand for new kitchen ranges and garden products amid good summer weather. |
| The Kingfisher chief executive, Thierry Garnier, talked of “slowly rising consumer confidence” with better mortgage affordability and stabilising property sales. “We have seen a resilient consumer in the UK,” he added. | The Kingfisher chief executive, Thierry Garnier, talked of “slowly rising consumer confidence” with better mortgage affordability and stabilising property sales. “We have seen a resilient consumer in the UK,” he added. |
| Kingfisher, which runs DIY stores across Europe, including Castorama and Brico Dépôt in France, posted sales growth of 1.9% at established stores in the six months to 31 July. This was driven by selling more items, with prices broadly flat. | Kingfisher, which runs DIY stores across Europe, including Castorama and Brico Dépôt in France, posted sales growth of 1.9% at established stores in the six months to 31 July. This was driven by selling more items, with prices broadly flat. |
| Garnier said sales of big-ticket purchases such as kitchens and bathrooms had grown for a third quarter in a row. | Garnier said sales of big-ticket purchases such as kitchens and bathrooms had grown for a third quarter in a row. |
| The retailer now sells three price ranges of kitchens – Essential, Select, and Signature – to broaden its customer appeal, and the cheapest range made up a quarter of kitchen sales in the first half. At B&Q, kitchen installations were up 36% year on year. | The retailer now sells three price ranges of kitchens – Essential, Select, and Signature – to broaden its customer appeal, and the cheapest range made up a quarter of kitchen sales in the first half. At B&Q, kitchen installations were up 36% year on year. |
| The company hailed robust sales growth in seasonal products, including gazebos, pergolas and garden furniture, outdoor paint and plants, because of good weather in the UK, while in Poland spring and summer were unusually cold. | The company hailed robust sales growth in seasonal products, including gazebos, pergolas and garden furniture, outdoor paint and plants, because of good weather in the UK, while in Poland spring and summer were unusually cold. |
| The retail group has also benefited from more than 50 store closures at its rival Homebase, which fell into administration last December. The bulk of Homebase shops were bought by the owner of The Range homeware chain. | The retail group has also benefited from more than 50 store closures at its rival Homebase, which fell into administration last December. The bulk of Homebase shops were bought by the owner of The Range homeware chain. |
| B&Q reported comparable sales growth of 4.4% in the first half, while Screwfix contributed 3% growth. France and Poland were weaker but the retailer said trends were improving. Kingfisher’s overall adjusted pre-tax profit rose by 10.2% to £368m, and its order book for big-ticket items was up in double digits at the end of July. | B&Q reported comparable sales growth of 4.4% in the first half, while Screwfix contributed 3% growth. France and Poland were weaker but the retailer said trends were improving. Kingfisher’s overall adjusted pre-tax profit rose by 10.2% to £368m, and its order book for big-ticket items was up in double digits at the end of July. |
| Kingfisher is now targeting the upper end of its full-year profit range of £480m to £540m. This cheered investors, and shares in Kingfisher jumped by 17% in London on Tuesday morning. Until Monday, they had been down by 23% over the past year, with the latest trade helping to erase much of those losses. | Kingfisher is now targeting the upper end of its full-year profit range of £480m to £540m. This cheered investors, and shares in Kingfisher jumped by 17% in London on Tuesday morning. Until Monday, they had been down by 23% over the past year, with the latest trade helping to erase much of those losses. |
| Chris Beauchamp, the chief market analyst at the online trading platform IG, said: “There was plenty to like about the numbers, which makes a nice change for shareholders. Combined with the recent improvement in Wickes’s trading, it seems things are finally looking up for this area of UK retail.” | Chris Beauchamp, the chief market analyst at the online trading platform IG, said: “There was plenty to like about the numbers, which makes a nice change for shareholders. Combined with the recent improvement in Wickes’s trading, it seems things are finally looking up for this area of UK retail.” |
| Kingfisher is among retailers that have been lobbying the government over plans for higher property taxes on larger buildings. Garnier said business rates were a “very unfair tax that doesn’t exist elsewhere in Europe”. The British Retail Consortium said up to 400 large shops in the UK were at risk of closure if the higher charges were introduced. | Kingfisher is among retailers that have been lobbying the government over plans for higher property taxes on larger buildings. Garnier said business rates were a “very unfair tax that doesn’t exist elsewhere in Europe”. The British Retail Consortium said up to 400 large shops in the UK were at risk of closure if the higher charges were introduced. |
| Kingfisher is “rightsizing” B&Q stores, reducing some that are too big, but the move is not linked to tax changes, Garnier insisted, but intended to adapt them to the needs of smaller households. Kingfisher has been trialling smaller store formats since 2020, and has 30 compact Screwfix City stores open across London and on high streets in other UK cities, targeting tradespeople. | Kingfisher is “rightsizing” B&Q stores, reducing some that are too big, but the move is not linked to tax changes, Garnier insisted, but intended to adapt them to the needs of smaller households. Kingfisher has been trialling smaller store formats since 2020, and has 30 compact Screwfix City stores open across London and on high streets in other UK cities, targeting tradespeople. |
| “It’s really our view of the customer and the future across the world because of demographic reasons, because of size of households, traffic in large cities and just evolution of societies,” Garnier said. “There is a general trend towards small formats … We are convinced that it’s the future.” | “It’s really our view of the customer and the future across the world because of demographic reasons, because of size of households, traffic in large cities and just evolution of societies,” Garnier said. “There is a general trend towards small formats … We are convinced that it’s the future.” |
| The retailer flagged extra costs of £145m from wage inflation, higher UK employer national insurance contributions, increased social taxes in France and the new packaging fees in the UK. | The retailer flagged extra costs of £145m from wage inflation, higher UK employer national insurance contributions, increased social taxes in France and the new packaging fees in the UK. |
| It expects to fully offset them through higher gross profit margins and cost-saving measures, and also benefited from a £33m one-off business rates refund in the UK. | It expects to fully offset them through higher gross profit margins and cost-saving measures, and also benefited from a £33m one-off business rates refund in the UK. |
| B&Q recently announced 672 job cuts, mostly in stores, with 65 to go at its Southampton headquarters, as it attempts to reduce costs. | |
| Kingfisher is renegotiating leases in the UK, and has introduced self-checkouts and better AI tools. For customers, it is offering a visual search tool that scans a broken part and quickly finds a replacement from the B&Q catalogue. |