NEWS Disappointing Q3 results for Kingfisher
Quarter three sales for Kingfisher for 2019 were registered at £3 billion, down 3.2% in constant currency. Like for like growth (LFL) was also down 3.9%, which the company has attributed to disruption from new range implementations, lower promotional activity and ongoing operational challenges in France, and softer market conditions in its main markets.
In the UK and Ireland, B & Q sales were down by -3.5% and LFL -3.4%, due to the impact of the implementation of new surfaces and decor and kitchen ranges. However, Screwfix sales were up 7.9% (LFL 3.7%), due to seven new outlets opening during Q3.
In France, its Castorama and Brico Dépôt sales were also down (-6.0% and -6.4%) respectively. In Poland, sales were
down -0.8% and in
Romania, sales down -0.6%. Commenting on the results, Thierry Garneir, chief executive officer, said: “It is clear that there is much to do to improve our performance. Kingfisher’s trading during Q3 was disappointing. My early assessment is that we have not found the right balance between getting the benefits of Group scale and staying close to local markets. We are suffering from organisational complexity, and we are trying to do too
much at once with multiple large-scale
initiatives distracted the running
in parallel. Altogether, this has brought disruption to sales and has
business
from focusing on customers. In addition, we faced softer market conditions in our main markets during the period.
“As a team, our priority is to fix our operational issues, particularly in IT and supply chain in France, and refocus our efforts. This includes stopping or
pausing a number of initiatives to concentrate on
stabilising
performance and trading. The effect of these changes will not be immediate.
“In parallel, we are building a longer term plan to refocus on our customers, simplify our model, embrace digital and return our business to growth. I look forward to providing an update on the business and our strategic priorities in March, within our full year results.”
Wilko appoints new head of design Pleasing sales report from Howdens
Alexei Cowan has been appointed to the newly created role of head of design for Wilko retail. Cowan will establish a dedicated product design capability within wilko retail focussing on trend interpretation and the development of desirable products specifically for wilko customers. Cowan’s last position was identifying
and reporting on trends for the WGSN lifestyle & interior team. Prior to that she was group creative director for a lifestyle design group which included
brands Perch & Parrow, Gallery Direct and Endon Lighting. Her previous roles include head of design for Home Retail Group (Sainsbury’s/ Argos/ Homebase) and senior designer for Next. The head of design will report into executive managing director of Wilko retail, Andrew Moore. Commenting on the appointment, Moore said: “Alexei’s appointment will enable us to establish
a stronger, more intuitive product focus through improving our customer offer based on insight and substantially reducing development lead times.”
BHETA hosts ‘Meet the Buyer’ day
The British Home Enhancement Trade Association (BHETA) held another of its ‘Meet The Buyer’ retail networking days with
home and hardware
retailer, Wilko and welcomed 55 suppliers to West Retford Hall in Nottinghamshire for over 100 appointments with members of the buying team. Categories represented on the day included home living, kitchen and dining, decorating and DIY, storage, garden and outdoor, cleaning and household, seasonal and craft. The event focussed on potential suppliers who could offer a wide variety of products as well as drop ship capabilities in the garden sector. Wilko, which now has over 400, mostly High Street, stores in the UK, positions itself as providing simple solutions to help families get their day to day lives sorted as quickly, easily and affordably as possible.
Howdens UK depots total revenue for periods seven to 11 increased by 4.9% and by 2.0% on a same depot basis, on the comparable Periods in 2018, with gross margin during Periods 7 to 11 being in line with management expectations. The company remains on track to meet the board’s expectations. Howdens also expects to open a total of around 40 depots in the UK in 2019, including five
Wheelbarrow firm stars in ‘Made in Britain’
A Walsall wheelbarrow company shared the secrets of its success in this week’s Made in Britain. Made in Britain on ITV4 is narrated by actor and comedian Ricky Tomlinson and is a tribute to the army of makers, inventors and innovators that make Great Britain, a manufacturing success.
Commenting on the day,
BHETA’s chief operating officer, Will Jones said: “The event was a great success with the Wilko team kept busy all day. We also had very good feedback from both BHETA members and non- members who reported on some very positive meetings.” Neil Fairhurst of Wilko added: “This was a very productive format from our point of view enabling us to engage with a large quantity of potential suppliers in a short space of time.”
The show is a celebration of British manufacturing, from the mass produced to the hand crafted and The Walsall Wheelbarrow Company featured as the TV cameras went behind the scenes to reveal how its wheelbarrows are made. Director, Simon Thacker, noted how they are the number one supplier to the building trade and as a result they will be launching a prostate cancer awareness campaign to try to get those in the trade to ‘man up’ and get themselves checked.
Thacker said: “We are aware that our biggest customers are from the construction
industry
and so we have decided to launch a dark blue barrow with an awareness lable, which will be a mobile billboard with advice on getting yourself checked for prostate cancer. “We are working with Prostate UK to help raise
Cancer
awareness and we are hoping to target those builders who may not be aware and we could end of saving lives.”
Snapes & Sons celebrate winning ‘Retailer of the Year’
Craig & Cheryl Snape of Snapes & Sons Home Hardware are
celebrating
having been announced as winners of ‘Home Hardware Retailer of the Year’.
www.diyweek.net In choosing a winner, Home
Hardware took into account the professional approach to retailing including
promotions, layout, staff store training, customer care and overall commitmen. “I’m delighted Snapes Home
Hardware has won this award,” said David Adams, chairman of Home Hardware. “The business was established in 1936, and Derek Snape, the second
generation of Snapes, recently celebrated his 92nd birthday and retired from the business a few years ago. Craig Snape,
Cheryl and their son Adam now run the business.”
9 DECEMBER 2019 DIY WEEK 5 wife @kingfisherplc
Big thank you to all of our @screwfix colleagues who volunteered their time to pick up the phones in our contact centres to support the #ChildrenInNeed2019 appeal
@IKEAUK We’re working to become climate positive and fully circular by 2030
in Northern Ireland, taking the total number of depots in the UK to around 734. Five new depots are also expected to be opened in France. Howdens has acquired 1.7 million shares since July 2019, and a total of 10.8m shares in 2019 to date, at a cost of £55.2m. As a result, it’s completed the £60m buyback programme that was announced in February 2018 and half of the £50m programme announced on 28 February 2019.
TWITTER TRADE TALK
@Bcc0rg
A big thank you @Woodland Trust for supporting BCC with free tree’s and @ Homebase_uk for the free compost for our 2019 community programme
@Homebase_uk So proud that our Christmas ad has been ranked #4 out of the top 20 by the UK Creative Industry. Have you seen it yet?
@kingfisherplc Today we launched our new blog platform. Read our first article, written by our Group Digital Director Andy Wolfe about how our 50-year old business keeps pace with #technology
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