Kingfisher, a British multinational company and Europe’s largest home improvement retailer, experienced a fall in its quarterly sales according to a report on Thursday. The firm attributes this to weak French markets, and is citing restructuring disruption as an additional burden.
The firm holds four main retail brands namely: B&Q, Castorama, Brico Dépôt, and Screwfix.
B&Q, which operates in the United Kingdom, experienced a 7.8% sales decline to £967 million, which is 4.7% on a like-for-like basis, making it the weakest-performing retailer in the group.
On the other hand, like-for-like sales shot 10.8% at Screwfix, which also operates in the United Kingdom.
Meanwhile, Castorama, and Brico Dépôt, Kingfisher’s French businesses, gathered a 3.3% fall in sales and a 3.8% fall on a like-for-like basis.
‘One Kingfisher’ Disruptions
Veronique Laury, Kingfisher’s chief executive, revealed several months ago a five-year strategy that has shocked investors, and divulged that it would take around £800 million of investment. Laury called her plan “highly achievable” in spite of analysts branding it as “ambitious.”
However, Kingfisher met “unforeseen business disruption” in the first quarter of this financial year. The said disruption had chipped around 2% off the firm’s sales which contributed to the lowering overall sales.
The chief executive still maintains a positive stance and stated that although B&Q’s performance was “impacted by seasonal swings,” the second quarter followed a very similar path to the first quarter.
Laury went on to say that the availability of this year’s unified and unique product “is now approaching normal levels.”
“We continue to adapt new processes as our transformation progresses, which will support the significant amount of change planned for H2,” Laury added.
There have also been changes in reins as new executives are appointed in the multinational company’s UK retailers.
Laury stated that the business has “self-help” plans for supporting its performance throughout the year, along with the implementation of the strategy’s next step.
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