Kingfisher’s energy saving solutions provide stability during challenging period, says GlobalData – Retail Times
Following today’s release of Kingfisher’s figures for the three months ending 31 October 2022, FY2022/23; Jamel Boughedda, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Customers looking to keep their homes warm over the winter have helped Kingfisher produce a resilient set of results for the three months to October 2022, with growth of 0.1% in the UK & Ireland and its international business outperforming. Total sales increased 1.7% to £3.3 billion, largely attributed to growth in Screwfix and its international channels. The group offered shoppers greater value through its own brand ranges which accounted for 45% of sales and focused more on trade customers, driving TradePoint like-for-like sales through its B&Q stores to rise 1.9% on last year.
“B&Q sales fell 2.7%, making it the only fascia to decline on a constant currency basis. However, these figures remained in line with expectations and ahead of the overall DIY & Gardening market, which declined 6.6% versus last year between August and October 2022. B&Q’s overall e-commerce sales achieved growth in Q3, aided by its marketplace concept. Beyond trade and online, other successful areas were insulation, bathroom furniture and storage. Its performance was stunted by its weather-related categories, where sales fell 11.5%, although against strong comparatives when it was selling through clearance.
“Screwfix was able to more than counterbalance the decline at B&Q as it reported sales growth of 4.9%, with considerable demand from trade customers boosting its performance in building & joinery and bathroom & storage categories. Its growth was driven by the opening of 17 new stores in Q3 and the fascia remains on course to reach its target of 80 outlets during the financial year. It also opened its first two French stores as it continues to expand its presence outside of the UK. The challenge for Kingfisher with Screwfix France will be ensuring that it does not erode sales at Brico Depot which serves similar trade customers.
“In France, total sales in constant currency increased 0.6%, with growth in both its Castorama business and Brico Depot firm. Both groups were boosted by sales of heating and insulation, as the energy crisis has caused customers to prepare more for the winter months. Its other international segments saw sales increase 8.4%, with its sales in Poland driving this, rising 10.5% supported by exceptional growth in kitchen.
“Kingfisher now anticipates full year adjusted pre-tax profit to be in the range of £730-760m, lowering its top end forecast from £730-£770m. The company stated it had got off to a good start in its fourth quarter with like-for-like sales up 2.8% and overall, its business remains in good shape. As energy bills continue to increase during the winter period, demand for Kingfisher’s energy efficient products will remain high and its recent launch of its energy saving tools will especially resonate with budget-constrained shoppers in the UK and France.”
Following today’s release of Kingfisher’s figures for the three months ending 31 October 2022, FY2022/23; Jamel Boughedda, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Customers looking to keep their homes warm over the winter have helped Kingfisher produce a resilient set of results for the three months to October…
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