Kingfisher has released its final results for the year ending 31 January 2024. Total sales fell for the period while UK and Ireland sales were positive alongside consistent market share gains.
Total sales were down -1.8% and LFL -3.1%. Q4 LFL -4.3%. The were positive UK & Ireland sales, but France and Poland sales were impacted by more challenging consumer backdrop. E-commerce sales penetration is up to 17.4% (FY 22/23: 16.3%), supported by strong marketplace sales growth at B&Q. There is the ambition for e-commerce to reach 30% sales penetration, one third of which represents high margin marketplace gross sales.
The group plans to grow by building on its different banners in the next financial year. Up to 40 new Screwfix stores are planned in FY 24/25 in the UK and Ireland. A further 15 stores planned for Screwfix France in FY 24/25, while Castorama Poland is targeting up to 75 medium-box and compact store openings over next 5 years.
Thierry Garnier, Chief Executive Officer, said: “Despite all the macroeconomic and consumer challenges in our markets over the past year, we have stayed focused on our customers and our long-term strategy. I am immensely proud of all our teams for their efforts. In the UK & Ireland, B&Q, TradePoint and Screwfix each delivered resilient sales and market share growth – in particular very strong gains at Screwfix. In France, where the market has been impacted by low consumer confidence, we have made significant adjustments to the cost base and started to embed e-commerce marketplace and trade customer initiatives similar to those successfully implemented in the UK. And in Poland, where we faced strong comparatives and a tough economic backdrop, sales trends are gradually improving in line with the consumer environment.
“We continue to execute against our strategic priorities at pace, with high conviction in our multiple growth opportunities. The success of our marketplaces in the UK and Iberia is well ahead of our expectations, with launches also planned in France and Poland this year. We have continued the international expansion of Screwfix, with 22 stores now open in France and encouraging results so far.
“Looking forward, we remain confident in the attractive growth prospects of the home improvement industry and our ability to grow ahead of our markets. In the short term, while repairs, maintenance and renovation activity on existing homes continue to support resilient demand, we are cautious on the overall market outlook for 2024 due to the lag between housing demand and home improvement demand. Against this backdrop we will remain agile and focused on what is within our control – leveraging our strategy to deliver market share growth, driving productivity gains, and managing our costs and cash effectively.
