B&Q owner Kingfisher mulls new round of store closures

DIY: Company announces plans to replace group CEO Veronique Laury

B&Q owner Kingfisher has kicked off the search for a new chief executive as it revealed plans for another raft of store closures amid tumbling annual profits.

Kingfisher said it had begun succession planning for under-fire CEO Veronique Laury, but has not yet set a date for her departure and confirmed she will remain in post until a successor has been appointed.

The group is also considering axing another 15 stores over the next two years on top of plans to shut all 19 Screwfix outlets in Germany.

The firm did not give details of the specific stores under review other than to confirm 11 are in France.

It came as Kingfisher reported a 52.8% plunge in pre-tax profits to £322 million for the year to January 31.

On an underlying basis and stripping out costs including £111m for store closures, pre-tax profits fell to £693m.

Ms Laury has faced increasing pressure as profits and sales declined despite her efforts under a five-year transformation plan launched in 2016.

She said: “As the transformation approaches its final year, I believe it is right for someone else to lead the next phase of the One Kingfisher journey.”

The group’s full-year results showed B&Q sales dropped 3% on a like-for-like basis over the year, while Screwfix sales grew 4.1% rise in comparable sales.

Kingfisher is rolling out Screwfix stores in the UK and has increased its target to around 800 outlets from 700.

The group signalled it was moving away from its original plans for its overhaul to give a £500m financial boost, as it said trading had been far tougher than it imagined.

B&Q’s turnaround has already seen Kingfisher shut 65 shops and slash around 3,000 jobs in the UK and Ireland.

It has also been shaking up its ranges and improving its online offering, while the group recently announced it was investing £100m as part of plans to lower everyday prices.

Kingfisher has nearly 24,600 staff in the UK and Ireland and more than 61,500 overall.

Kingfisher stock closed 15.60p down at 229.70p yesterday.