Kingfisher, the international home improvement company, have taken the decision to exit Russia, Spain and Portugal, to focus on markets where retailer have, or can reach, a market leading position, according to the last company statement about financial results for the Quarter ended 31 October 2018. Q3 total sales up 1.2% in constant currency, LFL down 1.3% reflecting continued weak sales in Castorama France .
“We are committed to our plan and to building a strong business for the long-term. As part of this commitment, we have taken the decision to exit Russia, Spain and Portugal. This will allow us to apply our strategy with more focus and efficiency in our main markets where we have, or can reach, a market leading position and create good homes by making home improvement accessible for everyone.
We continue to make progress on our ONE Kingfisher transformation. We remain on track to achieve our key strategic milestones for the third year in a row, and increased our gross margin in the quarter.
Transformation on this scale is tough, and we are operating in a difficult retail environment. We face challenges and we are addressing them. Our main challenge is Castorama France and we shared our action plan to fix it at the half year. Our action plan is now implemented for this year. We have accelerated our move to an everyday low price strategy and have launched a new marketing campaign to make it visible to our customers, however there is no quick fix”, said Véronique Laury, Chief Executive Officer.
Kingfisher is present in Russia through Castorama DIY retail brand where operated 20 stores and have over 3.800 employees.
Q3 total sales up 1.2% in constant currency, LFL down 1.3% reflecting continued weak sales in Castorama France.
Other CEE Markets
In Q3, total sales in Poland (Castorama brand) +3.9% (LFL +1.4%) despite the introduction of new laws on Sunday trading and against a strong comparative (Q3 17/18 LFL: +6.0%).
In Romania (brico Depot and Praktiker DIY retail brands), total sales +77.1% (LFL + 0.5%) at 69 million £, driven by the acquisition of Praktiker Romania.
Kingfisher plc is a leading European home improvement retailer which operates over 1,100 stores in 10 countries in Europe. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçtaş brand, a 50% joint venture in Turkey with the Koç Group.
This article is part of the CEE DIY retail category from www.bricoretail.ro B2B publication and bring together news, in english, from Central and East Europe related with DIY and home improvement retail.
You can get for free, directly to your e-mail address, the latest news from romanian DIY market and from Central and East European markets related with DIY and home improvement retail.
Subscribe HERE to our FREE newsletter, in ENGLISH.
For advertising, click HERE.