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| B&Q sales slump hits Kingfisher | B&Q sales slump hits Kingfisher |
| (6 months later) | |
| The UK's biggest DIY chain, B&Q, took a £25m hit on its bottom line last year due to the washout summer as profits at its owner Kingfisher fell for the first time in five years. | The UK's biggest DIY chain, B&Q, took a £25m hit on its bottom line last year due to the washout summer as profits at its owner Kingfisher fell for the first time in five years. |
| The chief executive, Ian Cheshire, also gave a downbeat prediction for the Easter weekend, a key period for do-it-yourself and outdoor retailers. Cheshire said the upcoming weekend was "not looking like a chirpy outdoor piece" but said trading could still even out over the season as a whole. | The chief executive, Ian Cheshire, also gave a downbeat prediction for the Easter weekend, a key period for do-it-yourself and outdoor retailers. Cheshire said the upcoming weekend was "not looking like a chirpy outdoor piece" but said trading could still even out over the season as a whole. |
| He added: "If you look at it in terms of a glass half full, last year we had the worst summer in 100 years; this is only the worst March in 50 years. The products that usually double in sales over Easter won't happen until people can physically get into the garden, yet alone enjoy it, but there is certainly a pent up desire to get out there." | He added: "If you look at it in terms of a glass half full, last year we had the worst summer in 100 years; this is only the worst March in 50 years. The products that usually double in sales over Easter won't happen until people can physically get into the garden, yet alone enjoy it, but there is certainly a pent up desire to get out there." |
| B&Q is particularly sensitive to the weather, Cheshire said, noting that sales of greenhouses slumped 28% last year but lawnmower sales were up 13% because grass grew so quickly. | B&Q is particularly sensitive to the weather, Cheshire said, noting that sales of greenhouses slumped 28% last year but lawnmower sales were up 13% because grass grew so quickly. |
| Wellington boot sales jumped 25% and paints sales grew 9% as DIY-ers turned attentions to interior repairs instead. Paint sales are vital to the business, making up 9% of total sales. | Wellington boot sales jumped 25% and paints sales grew 9% as DIY-ers turned attentions to interior repairs instead. Paint sales are vital to the business, making up 9% of total sales. |
| Overall B&Q saw like-for-like sales slump by 5.6%, with profits down 20.8% in the year to 31 January and while its UK stores made a profit, in Ireland the nine B&Qs there made a combined loss of £7m. Overall profits before tax at Kingfisher fell 13% to £691m for the full year, including the impact of translating figures from euros and zloty into pounds. Like-for-like sales dropped 2.9% and overall revenue was down 2.4% at £10.6bn. | Overall B&Q saw like-for-like sales slump by 5.6%, with profits down 20.8% in the year to 31 January and while its UK stores made a profit, in Ireland the nine B&Qs there made a combined loss of £7m. Overall profits before tax at Kingfisher fell 13% to £691m for the full year, including the impact of translating figures from euros and zloty into pounds. Like-for-like sales dropped 2.9% and overall revenue was down 2.4% at £10.6bn. |
| The company has cut UK retail space at one of its B&Q stores by 50% and is looking to do the same at four more stores, with a desire to cut floor space across its 361 outlets by 20%. Cheshire said this would not involve shedding staff and B&Q hoped to achieve the same amount of sales in smaller shops. | The company has cut UK retail space at one of its B&Q stores by 50% and is looking to do the same at four more stores, with a desire to cut floor space across its 361 outlets by 20%. Cheshire said this would not involve shedding staff and B&Q hoped to achieve the same amount of sales in smaller shops. |
| Kingfisher was also hit by weak consumer confidence in its three key markets of the UK, France – where it owns Castorama – and Poland. Cheshire said there were signs of "gentle progress" in the UK this year, with better employment figures and a boost to the housing market from the budget. He said that would likely only result in flat markets, rather than negative ones. | Kingfisher was also hit by weak consumer confidence in its three key markets of the UK, France – where it owns Castorama – and Poland. Cheshire said there were signs of "gentle progress" in the UK this year, with better employment figures and a boost to the housing market from the budget. He said that would likely only result in flat markets, rather than negative ones. |
| In Poland he expects a return of confidence, but in France he said the situation was unclear as it "depends a lot on what the government can do to reassure consumers we are on an even keel". | In Poland he expects a return of confidence, but in France he said the situation was unclear as it "depends a lot on what the government can do to reassure consumers we are on an even keel". |
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