Kingfisher cashes in on trend for DIY makeovers

Published on Thursday 23 July 2009 21:23

DIY retail giant Kingfisher yesterday said the trend for low-cost room makeovers helped its B&Q chain to deliver better-than-expected sales figures.

Kingfisher said that second-quarter UK sales rose by 1.5 per cent – up 0.7 per cent on a like-for-like basis – in the ten weeks to 11 July, with trading also boosted by demand for gardening products and the collapse of rival operators such as MFI.

The quarterly performance for B&Q was much better than the 3.5 per cent decline forecast beforehand in the City.

B&Q's like-for-like figure is lower than the 3.2 per cent improvement reported in the previous quarter, but this result was inflated by the impact of warm spring weather on sales of outdoor products.

Kingfisher's sales boost comes as the property market slump prompts more homeowners to do up their houses rather than try to move.

Sales of B&Q kitchens, bathrooms and bedrooms did well in the quarter, helped by new ranges and the withdrawal of competitors. Seasonal categories were down 2 per cent but demand for core DIY and decorative products remained resilient, Kingfisher added.

Across the group, which is the world's third largest home improvement retail firm, sales were down by 1.9 per cent on a like-for-like basis.

The decline was driven by a 5.6 per cent fall for France's Brico Depot, which has been impacted by the slowdown in housing starts and major project planning consents. Castorama was down 0.8 per cent after benefiting from a modernisation programme.

The weak housing market has also hit trading in China, where sales declined by 13.2 per cent.

Kingfisher chief executive Ian Cheshire said the group continued to perform well in a tough environment. He added: "B&Q in the UK was again stronger than anticipated as it continued to capitalise on the growing trend for home and garden DIY, low-cost room makeovers and competitor withdrawal."