Falling Sales: Plumb Merchant

Kingfisher, owner of Screwfix, Trade Depot and B&Q has reported a fall in UK sales for the quarter to May 2008. The retailer has blamed heavy rains and poor weather conditions over the spring which dampened the trade market and the DIY market.

Screwfix, with over 120 trade counters offers a over 14,000 products, tools and parts for the plumbing and heating trade as well as other trades. B&Q is the number one DIY retailer in Europe and the third largest in the world, with more than 60 stores opened internationally, including B&Q Beijing, which is now the largest B&Q store in the world.  The company has 330 stores in UK and Ireland and employs over 39,000 employees.

Like for like sales at B&Q, Screwfix and Trade Depot in the UK were down 7.9% and profits came down as well in the quarter to 3rd May 2008. Strong trading in Eastern Europe helped to offset this and bring total pre-tax profit for the group to £96 million (increase of 9%).

DIY chains in the UK have reported poor trading on the back of higher interest rates, higher mortgage costs and a sharp decline in the housing market, which dampened home-related spending, such as new central heating system, boiler replacements, new bathroom installations etc.

New chief executive Ian Cheshire said that B&Q is launching new ranges, including bathroom and kitchens and other plumber related product ranges. He also believes that a store revamp for B&Q has helped to attract shoppers in the last quarter.
The company has taken major steps overseas, including opening new stores in France, Russia, Poland and Turkey.

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