Screwfix leaves B&Q in the dust with stunning Q1 performance
Published: 24 May 2017 - Jenny Wonnacott
Screwfix was the star of the show once again as Kingfisher released results for its first quarter to April 30, 2017, with sales up a staggering 20.3%, a 12.6% boost like-for-like – largely outperforming all other operations including B&Q.
Screwfix saw a huge sales increase during the first trading quarter due to its “leading digital capabilities.”
Screwfix's performance was attributed to its “leading digital capability, new and extended ranges and new outlets.”
Total sales increased by 1.5% for the group's UK operations, up 3.5% LfL, bringing the total to £1,270m for the period. Sales at B&Q declined by 4.4% (-4.6% constant currency), but the retailer saw a marginal 0.5% increase LfL. The decline here reflected “annualisation of completed store closure programme” with the LfL increase “including benefit from sales transference associated with store closures and strong digital growth (+31%).” Seasonal LfL sales were up 17.5%, with LfL of non-seasonal, including showroom down 3.9%.
In total, the group saw a 0.6% decline LfL, reflecting “continued weaker sales in France and some business disruption from [the] ONE Kingfisher plan.” The group said it remained on track to deliver Year 2 strategic milestones.
Chief executive Veronique Laury said: “We have set ourselves up well for our transformation, which continues in line with our plans. Strong performance in Screwfix and Poland continues, though performance in France remains weak. In addition, we are experiencing some business disruption given the volume of change, as we clear old ranges, remerchandise new ranges and continue the roll out of our unified IT platform.
“However, we are on track to deliver our Year 2 strategic milestones. Early customer reaction to our new ranges is encouraging, especially in France where our new unique bathroom ranges are launching first. We are also progressing well with our IT platform, which is now live in nearly a third of our Castorama France stores and which will enable us to build a much stronger digital offer.
“We remain confident in the size of the prize and our ability to deliver our long term plan, both the financial benefits of the transformation and the benefits to customers, supported by the continued expertise and energy of our colleagues.”