|  

Kingfisher withdraws from Russia, Spain and Portugal

17.12.2018 − 

Kingfisher is to withdraw from the markets in Russia, Spain and Portugal. In future, the company intends to focus on its core markets in which it already holds or will be able to achieve a leading position. A decision to this effect was announced by Véronique Laury, CEO of Kingfisher, in connection with publishing of the preliminary figures for the third quarter of the 2018/2019 business year. In parallel to this concentration of activities on the future core markets, the activities are also to be optimised. The main focus is currently on Castorama France, which had to contend with declining turnover and key results figures.

According to the trading update published on 21 November, in the third quarter of the 2018/2019 business year (31 January) which ended on 31 October, turnover of Castorama France, adjusted to account for currency fluctuations, declined by 7.6% compared to the corresponding period in the preceding year. On a like-for-like basis the decline amounted to 7.3%. By contrast, Brico Dépôt recorded an increase of 2.4% in total turnover and 1.1% on a like-for-like basis. In total, Kingfisher’s turnover in France thus declined by 3.9% to £1.107bn (adjusted to account for currency fluctuations -3.1%, like-for-like -3.4%).

Kingfisher’s distribution channels in Great Britain & Ireland also developed along contrasting lines. Whilst turnover of B&Q decreased by 2.8% (like-for-like -2.9%), Screwfix, by contrast, recorded a 10.6% increase. In the third quarter, nine new Screwfix stores were opened in these two countries, resulting in a turnover increase of 4.1% on a like-for-like basis. Total turnover in Great Britain and Ireland thus increased by 1.4% to £1.292bn. In the other international business division unadjusted turnover rose by 5.4% to £649m. Increases in Poland (+2.4% to £388m), Spain/Portugal (+0.9% to £87m), Romania (+77.1% to £69m) and at Screwfix Germany (+5.8% to £4m) contrasted with a turnover decline in Russia (-6.4% to £101m) compared to the corresponding period in the preceding year.

Tags of this news:

previous − Klöpferholz will become partner in Hagebau

British Confor and UKFPA merge on 1 January  − next