DIY a disaster for Kingfisher
B&Q CHIEF SAYS FIRM DOES TOO MUCH
THE new boss of DIY chain B&Q’s owner has admitted the business is too complicated and there is “much to do” to turn it around.
Thierry Garnier, who replaced Veronique Laury as chief executive of Kingfisher eight weeks ago, also branded recent trading as “disappointing”.
B&Q’s sales in the UK and Ireland fell 3.4% in the three months to the end of October.
It blamed tough economic conditions and a decision to stop installing kitchens and bathrooms.
Kingfisher’s European chains also continued to struggle.
Sales at French businesses Castorama and Brico Depot tumbled by around 6%, with its offshoot in Poland down 3.2%.
The one bright spot continued to be Kingfisher’s small builders’ merchant arm Screwfix, in the UK. Total sales at
Screwfix were up 7.9% in the quarter, and the chain plans to open its first branch in the Republic of Ireland.
Garnier said: “It is clear that there is much to do to improve our performance. “Kingfisher’s trading during the third quarter was disappointing. “We are suffering from organisational complexity, and we are trying to do too much at once with multiple large-scale initiatives running in parallel. “Altogether, this has brought disruption to sales and has distracted the business from focusing on customers.” Garnier said he was prioritising plans to fix issues with the group’s IT and supply chain in France, and would continue to sharpen the focus on reversing sales declines. Kingfisher’s half-year profits dropped 12.5% to £245million.