Member Article

B&Q to close 60 stores

Kingfisher, the owner of DIY chains B&Q and Screwfix, has announced plans to close 60 B&Q stores over the next two years.

The retailer’s parent company reported a dip in pre-tax profit from £759m to £644m for the year ending 31st January, while sales reduced to just below £11bn, compared to £11.1bn for the previous year.

Véronique Laury, chief executive officer, said: “We have a lot to do and we are announcing today a set of first ‘sharp’ decisions which are already underway including the closure of around 15% surplus B&Q space (c.60 stores) and our few loss making stores in Europe, the development of unified garden and bathroom businesses and the start of a Big Box revitalisation programme across Europe.”

Kevin O’Byrne, chief executive for B&Q UK & Ireland, has also announced his departure from the company on 15 May 2015 with further details to be announced in due course.

The store closures, which will result in a £350m one-off cost, mark Veronique Laury’s first major move as chief executive.

The firm, which currently has 360 B&Q stores, has so far confirmed the locations of six store closures: Southampton, Dundee, Baums Lane in Mansfield, Stetchford Road in Birmingham, Hyde in Greater Manchester, and Barnsley.

Screwfix, which is also owned by Kingfisher, saw total sales grow by 25.5% (+13.4% LFL) to £83m, ‘driven by new ranges, a strong promotional programme reinforcing its value credentials.’

The company announced a roll out of new outlets, complemented by further digital and mobile development, with 60 new stores opened during the period, taking the total to 395.

Karen Witts, chief financial officer, said: “We believe our plans will drive an increase in the value of our business for shareholders, with improved financial metrics through higher sales and lower costs, whilst at the same time optimising the generation and use of cash. “Besides the growth in full year dividend, we are also pleased to be announcing today a further £200 million capital return during FY 2015/16 reflecting our confidence in our medium term prospects. In the short term, whilst we remain encouraged by the improving economic backdrop in the UK, we remain cautious on the outlook for France, our biggest market.

This was posted in Bdaily's Members' News section by Ellen Forster .