Published on 27 - November - 2008
Kingfisher results: Trade Depot to close but Screwfix profits upKingfisher UK's profits slumped as the effects of a miserably wet summer and the economic downturn hit.
Overall, retail profit was down £9m to £29m, from last year's £38m, with August a particularly bad month for B&Q as customers kept their cash in their pockets.
Like for like sales across the firm fell by 9.2%, to £1,020m, with B&Qs total like for like sales down 8.7%.
Garden products were down 17% while the higher ticket items, like bathrooms and kitchens, were also down 14%.
The downturn has led Kingfisher to scrap its three-year old Trade Depot arm, which had nine stores around the country, after it posted losses of £5m for 2007/08.
But, sales of the firm's core DIY and room makeover products performed better than expected and were only down 3%, indicating a continued trend for people to 'make do and mend' rather than buy new.
And, Screwfix sales grew 8.1% to £126m, driven mainly by continued roll out of trade counters. Four new outlets have been opened taking the total to 134 with a further four planned in Q4.
The firm also carried out a trial of lower-cost revamps of two of its 323 large and medium stores.
Euan Sutherland, chief executive B&Q and Kingfisher UK, said the firm was maintaining its focus on cost management.
He said: "Resources will be focused where we will achieve higher and faster returns. As a result, the new and as yet unproven Trade Depot stores will close and resources will instead be concentrated on developing B&Q and Screwfix in the trade market."
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