Latest trading figures from Kingfisher confirm it remains among the retail winners during the pandemic after benefitting from consumers adapting their properties to homeworking and diverting spending from holidays and leisure to DIY projects.
Over the third quarter to 31 October, the group’s overall like-for-like sales jumped 17.7%.
It UK & Ireland division was the star performer with like-for-like growth of 19.9%. Sales at B&Q jumped 24%, driven by strong demand in all categories but particularly outdoor products. Screwfix recorded a 12.8% increase amid strong demand from trade customers.
The group’s overseas businesses also performed well with sales in its French division up 19.2% and Other International growing 7.5%.
However, Kingfisher revealed that like-for-like sales growth had slowed to 12.6% in its fourth-quarter so far to 14 November, largely reflecting the impact of recent lockdown measures.
Thierry Garnier, Chief Executive Officer, said: “We achieved strong sales growth in Q3 across all retail banners and categories, with higher footfall and average transaction value. Our growth was supported by strong market demand, as consumers spent more time in their homes and focused on improving them.”
The group highlighted the success of its recent strategic and operational actions to drive long term growth, although it cautioned that uncertainty over the pandemic and the impact of temporary lockdown restrictions in most of its markets continued to limit its near-term visibility.
Meanwhile, the group said it expects a £175m boost to profits this year from “temporary cost savings” that include the government’s business rate relief support during the pandemic. The admission adds to the growing controversy about whether businesses that have done well during the crisis should be receiving what amounts to state aid.
NAM Implications:
- Key will be how DIY will change with any improvements in the economy.
- i.e. become more like Japan where homeowners will optimise their lockdown insights/skills…
- …and super-savvy consumer skills…
- …by focusing on buying materials wisely…
- …and employing others to carry our home improvement tasks?
