Kingfisher, the owner of B&Q, has seen its profits rise slightly, despite facing challenges with high-value sales.
Even though certain sectors saw reductions, the group’s strategic adaptations have enabled it to maintain profitability.
Kingfisher, the parent company of the renowned B&Q chain, reported a slight increase in profits for its half-year results ending 31 July, despite experiencing a decline in overall group sales. The company’s statutory pre-tax profit rose by 2.3% to a substantial £324 million. This growth is a noteworthy achievement given the context of declining sales in high-value items, which Kingfisher characterised as ‘weak’.
B&Q faced significant challenges with its big ticket sales, which saw a steep decline of 11.6% during this period, affecting overall sales figures. Comparatively, the group’s sales dipped by 1.8%, highlighting the pressing challenges in consumer demand for larger home improvement products. This contrasts with a general trend of stable sales for core, smaller-ticket items.
Notably, there was an observed recovery in seasonal sales since early July 2024. This uptick provides a silver lining for Kingfisher, even as its big ticket sales continue to struggle, declining 6.8% on a like-for-like basis over the six-month period.
Moreover, the company’s eCommerce platforms played a pivotal role in maintaining sales momentum, with 40% of B&Q’s online transactions made through its marketplace platform. These figures underscore Kingfisher’s strategic focus on strengthening its digital presence.
Screwfix, another significant brand under Kingfisher’s umbrella, recorded a modest sales growth of 1.2% over the same timeframe. This progression illustrates the brand’s resilience in an otherwise challenging retail environment. Screwfix’s performance hints at the potential advantages of focusing on less volatile, often necessary items.
Garnier noted positive early indicators of a housing market recovery, especially in the UK, which bolsters Kingfisher’s growth prospects for 2025 and beyond. His remarks reflect an optimism grounded in the company’s robust strategic positioning.
Kingfisher remains committed to capitalising on its strengths in eCommerce and trade customer engagement, as outlined by Garnier. The company plans to persist with its cost management strategies and seek efficiency improvements, maintaining focus on core retail strengths to navigate uncertain market conditions.
Kingfisher’s strategic focus on ecommerce and cost management positions the company well for future growth.
Despite current market challenges, Kingfisher remains resilient, banking on sector recoveries and innovative strategies.
