Kingfisher recovery boosted by e-commerce

E-commerce sales soar by 164% and account for 19% of the group's total sales

23 Sep, 20

Owner of B&Q and Screwfix, Kingfisher reported a “resilient performance” in the first half of the year, with the impact of COVID-19 offset by “strong recovery” in Q2.

B&Q sales drop in Q3

It reported a stronger demand for home improvement across its markets, during lockdown, were responsible for the growth.

Retail profit was up 17.7% and accounted for £533million sales and in the first six months to July 31, ecommerce sales grew 164% and now account for 19% of the group’s total sales.

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The retailer’s statutory pre-tax profit rose 62.4% to £398million and adjusted pre-tax profits grew 23.1% to £415million.

Chief executive officer of Kingfisher Thierry Garnier said the crisis “is creating new home improvements needs, as people seek new ways to use space or adjust to working from home. It’s also clear that customers are becoming more comfortable with ordering online.”

In the first half of the year, the group adjusted its operations to scale up to high e-commerce demand and established a “home delivery from store” service for B&Q.

By the end of July it was processing more than half of its home delivery orders for B&Q, with click and collect representing 79% of group e-commerce sales.

As part of its focus to grow through exclusive own brands, Kingfisher rolled out a new kitchen range for B&Q in H1.

Although its B&Q kitchen and bathroom offer was closed for nine weeks, as a result of the Coronavirus crisis, following its socially distanced and virtual model, it reported at the end of H1 20/21 sales were “substantially ahead” of the same period last year.

Kingfisher also stated the role of the store was “integral to long-term success in retail” and following a trial of a compact B&Q format in Merton, it has plans to develop similar stores.

In addition, it is also set to trial B&Q concessions in four Asda stores from later this Autumn.

The group also reported it continues to test new service propositions, including kitchen installations at B&Q, ahead of plans to relaunch the service across all stores within the next six to 12 months.