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Tough second quarter for B&Q UK

Published: 21 July 2011
B&Q UK sees like-for-like sales fall 6.7% in the 11 weeks to July 16.
Tough second quarter for B&Q UK
Parent company Kingfisher has reported a 5.5% like-for-like UK sales decline in Q2 with B&Q contributing a 6.7% decline.

Conversely, sales at Screwfix increased 10.5%, boosted by new counter openings and "plumbing and electrical trade initiatives". The results mean that UK sales for the half-year to July 16 are down 1.8% in like-for-like terms.

Outdoor seasonal products saw sales slide 20% in Q2, affected by a strong first quarter when sales increased 15% due to the early warm weather.

Group ceo Ian Cheshire explained: "As anticipated, conditions in our second quarter were tougher than the first quarter which benefited from favourable weather."

However, the effect of the Focus store closure programme and the associated clearance sales also played a part. Mr Cheshire said: "The UK market remains challenging compounded by disruption in the second quarter from heavy stock clearance activity by a major competitor closing down.

"This clearance activity is now largely complete," he continued, "and looking ahead I am delighted that we have been able to secure excellent new sites for B&Q," Referring of course to the 30 stores cleared for Kingfisher acquisition by the OFT.

The UK was the only region to see lfl sales fall in the period, with French operations, including the Castorama and Brico Depot fascias, seeing a 3.7% lfl sales uplift and other international sales up 1.4%.

This means, said Mr Cheshire, that the group remains "on track year to date" adding that "gross margins are ahead in all our major markets so far this quarter, supported by more direct sourcing and the gradual introduction of common ranges.

"These are testing times for retailers, particularly in the UK, but also an opportunity for strong businesses such as ours to strengthen their position. We expect to emerge from this year in excellent shape and well prepared to start delivering the next phase of our growth plans."

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