B&Q sales growth falters in tougher conditions

The two-and-a-half year growth in sales at B&Q has finally ended as parent company Kingfisher reported a fall in sales at the UK and Ireland DIY store chain of 1.2% in like-for-like sales in the quarter to January 29, 2005.

Kingfisher's French division Castorama turned in a similar sales performance with a fall in sales of 0.9%.

The drop in sales at the DIY stores was blamed on weaker than anticipated consumer demand and out-dated ranges at B&Q, while refits at Castorama were said to have disrupted in-store trading during the quarter.

B&Q has experienced an ongoing overhead efficiency drive in the quarter, but in a statement Kingfisher said that the "benefits did not fully offset the weaker sales and price reductions in the period".

The group also operate Screwfix Direct, which has recorded positive sales growth since the commissioning of its new "fulfilment centre", Screwfix Direct's call centre and internet site, which were fully brought online in mid-December.

Commenting on the group's overall performance, Kingfisher Chief Executive, Gerry Murphy, said: "Kingfisher delivered good fourth quarter sales growth in France, Italy and China, offset by weaker performances in a more challenging UK market and in a Polish market impacted by last year's VAT changes. For the full year, Kingfisher delivered a solid overall performance, growing total sales by 9.9% and like-for-like sales by 3.9%.

"With a continued focus on margins, costs and cashflow, Kingfisher expects to announce pre-exceptional profit before tax in line with the current consensus of analysts' estimates on 17 March 2005."

Kingfisher plc is Europe's largest home improvement retailer with nearly 600 stores in nine countries in Europe and Asia.

While the group's main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct, Kingfisher also has a 21% interest in Hornbach, Germany's leading DIY Warehouse retailer.

(SP)