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Kingfisher drives Screwfix half-year sales up 27.9%

Published: 15 September 2015
Sales at Screwfix continued to storm ahead in the half year to August 1 2015, parent Kingfisher said today.
Kingfisher drives Screwfix half-year sales up 27.9%
Screwfix grew total sales by 27.9% and by 16.5% on a like-for-like basis to £494m, driven by strong growth from the specialist trade desks exclusive to plumbers and electricians within Screwfix outlets, strong digital and mobile growth, new and extended ranges, and the roll-out of new outlets.

Seventeen net new outlets were opened, taking the total to 412, and Screwfix remains on track to open 60 more stores in the 2015/16 year.

Year-on-year mobile sales almost doubled at Screwfix over the period, and lighting was a star performer, driven by sales of LED bulbs.

By comparison, the performance of sister fascia B&Q appeared lacklustre, with total sales up only slightly, by 0.2% and by 0.7% like for like, to £2,033m. Sales of outdoor seasonal products fell 2.3% while sales of indoor products, excluding showroom, were up 3.6%.

Sales of showroom products were down 2.4%, driven by the decision to reduce promotional activity.

Kingfisher said core categories were among the highlights at B&Q over the half year. Interior coloured paint stood out, with top-selling shades including Light Rain, Grey Slate and Duck Egg.

Wallpaper did well too. Best sellers here included Muriva Brick Effect, Grandeco Kensington Gold/Natural and Calligraphy Heather.

Indoor lighting, light bulbs and power tools were also among the highlights, and online sales progressed well.

B&Q has introduced various initiatives to drive productivity, including 'store friendly deliveries', making it quicker and easier for store staff to replenish, and roller checkouts to improve customer experience as well as scanning and database accuracy.

Across both B&Q and Screwfix, which comprises Kingfisher UK & Ireland, sales were up 4.6% and by 3.3% like for like to £2,527m. Retail profit grew by 16.8% to £194m; gross margins were flat.

Kingfisher as a whole saw year-on-year sales up 3.5% to £5,382m (up 2.0% like for like) and retail profit up 5.0% to £410m in constant currencies. Adjusted pre-tax profit of £384m was down 2.3%.

As part of ceo Véronique Laury's shake-up of Kingfisher, the business is now developing a unique garden and bathroom offer and overhauling its core essentials. These latter - paint brushes, light bulbs, batteries, etc - make up around one third of the company's total buying scale, and Kingfisher is now set on "significantly reducing" the number of SKUs and suppliers within the category.

The business also plans to cut the 193,000 delisted and ex-promotional SKUs which do not form part of its existing retail planograms.

Kingfisher has also completed the creation of its new leadership team with the appointment of Emily Lawson as chief people officer.

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