Demand for energy efficient products powers up Kingfisher
DIY retailer Kingfisher, the parent group of B&Q and Screwfix, has recorded a third quarter sales increase of 1.7% to £3.3bn, with the retailer saying that demand for energy efficiency was supporting DIY sales.
In the three months to October 2022, Kingfisher, who also operate stores in France and Turkey, recorded sales were significantly above pre-pandemic levels, with an increase of 15.3% on a three-year like-for-like (LFL) basis.
The retailer also recorded a strong start to the fourth quarter, with a 16.2% increase on a three-year LFL basis for the three weeks leading to November 19.
Kingfisher said Screwfix, who have opened two debut stores in France, had made significant gains in market share. TradePoint, B&Q’s trade-focused banner, saw a 29.5% increase in sales on a three-year LFL basis.
However, UK & Ireland sales were down 2.3% in the third quarter on a LFL basis, with Kingfisher citing abnormally warm October weather and the funeral of Her Majesty Queen Elizabeth II as reasons for a poorer sales period.
Thierry Garnier, CEO of Kingfisher, said: “While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency. DIFM (do-it-for-me) and trade activity also continues to be well supported by robust pipelines for home improvement work.”
“While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets”, he added.
Kingfisher anticipates a 2022/23 adjusted pre-tax profit in the range of circa £730m to £760m. This calculation includes profit and loss investments in the Screwfix France opening plan, additional wage support for staff, and higher energy costs.