Latest news with #ThierryGarnier
Daily Mail
12-07-2025
- Business
- Daily Mail
We're still on a roll - thanks to Britain's builders, says Screwfix boss
There is great excitement on a sweltering hot day on my local high street in East Sheen, South-West London, where the staff at Screwfix await a visit from Thierry Garnier, the chief executive of its owner, Kingfisher. The bold Screwfix fascia is a newcomer to the city centres and suburbs of Britain. A supplier to the smaller tradesman, it is at the cutting edge of shopping innovation. Under Garnier's leadership, Screwfix has transformed turnaround times for local builders, enabling them to spend more time on the job. The concept of smaller Screwfix outlets occurred 'by accident' during the pandemic, Garnier explains. He said Kingfisher had experimented with a 'very tiny' store at London's Victoria station and was 'amazed by the result'. The French boss, who lives in Marylebone, central London ('I don't like to commute,' he says), dresses for the shop floor, not the boardroom. Slim and lithe, he wears a blue polo shirt and a blouson. We don't tend to think of Kingfisher as a clothing retailer. But among its best sellers in the blazing summer heat are hard-wearing shorts for construction workers and durable fans on stands. I wonder if the arrival of a Screwfix on my high street risks putting the local hardware shop out of business? The store manager argues that they do different things. When someone comes in looking for a couple of brass screws, he sends them to the DIY shop. Builders want bulk - a box of a hundred or more. The building trade, Garnier tells me, now say 'I'll Screwfix it' when going online, like when people say 'I'll Google it'. Store assistant Steve, who shows me around a 'City' format shop with 12,000 items, demonstrates a screen that can identify a broken part, such as an electric socket or an obscure tool, and source it immediately. The IT system then locates an exact replacement that can be clicked and collected within a minute or couriered locally within 20 minutes. There are now 952 Screwfix stores in the UK, with 30 in city centres, and another 30 planned for this year. Aside from Screwfix, Kingfisher is best known for B&Q. Bringing more technology and speed to Kingfisher is among the ideas learned in China that Garnier, 59, has brought to the group since taking the helm in September 2019. A Sino-enthusiast, he tries to keep up with his Chinese language skills, having spent a great deal of time in the country. As a result, he says the antipathy to Beijing in the US and the West is 'very sad'. The company's expansion plans include rolling out more Screwfix stores and extending Tradepoint, the membership scheme for tradesmen at larger B&Q stores, by adding builders' entrances. It is also experimenting with smaller high street and suburban B&Qs, with the collapse of rival Homebase having created a chance to snap up useful locations. Garnier buys into Britain as a nation of gardeners, with B&Q now claiming to be the biggest horticultural retailer in the UK. Kingfisher is also focused on expanding its online operation, and is devoting a third of its spending to technology. However, there are clouds on the horizon. Kingfisher, which also owns brands such as Castorama in France, expects to take a multi-million-pound hit from Labour's decision to raise employers' national insurance contributions. But Garnier strikes a philosophical, almost conciliatory, tone to the tax raid. 'It is an obviously difficult situation [for the Government],' he says. Yet it will take a toll on the firm, which expects a £145 million hit to profits as a result of tax rises in the UK as well as a similar payroll and packaging tax in France. Garnier also vents his frustration at Whitehall's failure to recognise what he says is the imbalance between online and brick-and-mortar retailers. 'If you describe yourself as an online company, you don't pay tax at all in the UK,' Garnier says. 'Even in the EU, they don't pay tax anywhere. That's unfair, because retailers must compete with them.' That causes companies to 'invest less' and 'over time you lose competitive edge'. He adds: 'We need a level playing field with online companies, such as Amazon and Google.' I suggest that all of this works against Chancellor Rachel Reeves's growth agenda. 'Yeah, exactly,' he retorts. The Frenchman's biggest corporate challenge is Kingfisher's French arm, sparking speculation that it might be separated from the rest of the business or sold. But he is adamant that it is a core business and that shareholders have bought into a recovery plan. 'Discounter Brico Dépôt [in France and Spain] is doing very well. We gained market share in 2024,' Garnier says, although he admits that France is still 'tough and more difficult than the UK'. ' Inflation is lower in France than in the UK, but unemployment is higher. In France, it is all about consumer sentiment. The British consumer is very resilient, there is an energy in the UK,' he says. By contrast, the French are more cautious. In uncertain times, they save rather than spend. Turning Castorama around has required some changes, including talks with France's trade unions to push through job cuts. And some of its shops are being moved to franchise models. 'That's delivered so far,' he says. In Britain, Kingfisher isn't worried about the unions. But does he fear the changes in Deputy Prime Minister Angela Rayner's Employment Rights Bill? Garnier is sanguine, believing the company is in a 'good place' to weather the changes. But he concedes that the firm might have to adjust some part-time contracts. As a keen sailor, Garnier is used to moving with the prevailing winds, which may explain his somewhat relaxed attitude to the storms buffeting the UK economy. That doesn't mean he is happy with the country's direction, and is unimpressed by Labour's failure to build relationships 'through engagement, trust and stability'. 'That's what we need,' he says.
Yahoo
28-05-2025
- Business
- Yahoo
Kingfisher's Q1 FY25/26 UK & Ireland sales up 5.9% amid favourable weather
Kingfisher, the parent company of B&Q, Screwfix and other retail brands, has posted total sales of £3.31bn ($4.48bn) for the first quarter (Q1) of the fiscal year 2025/26, representing 1.6% growth on a reported basis and an increase of 2.2% at constant currency compared to the same quarter of the previous year. The firm experienced a like-for-like (LFL) sales increase of 1.8% for the quarter. In the UK & Ireland markets, Kingfisher's operations, which include B&Q and Screwfix, saw sales climb to £1.73bn - a 6.1% rise and a 5.9% like-for-like change. This surge was attributed to a 7.4% increase at B&Q and a 4.1% rise at Screwfix. The underlying expansion of the company was propelled by B&Q, which benefited from comparisons to its weaker performance the year before. At the conclusion of Q1, Kingfisher reported a group order book that showed improvement when compared to the same period of the previous year. The company witnessed significant growth in double digits within its UK operations, which can be largely attributed to beneficial weather conditions. It is possible that a portion of this surge in growth may have been due to sales being advanced from the second quarter. Kingfisher's performance across different regions aligned with prevailing consumer behaviours, exhibiting robustness in the UK market, while experiencing weaker results in France and Poland. In France, where Kingfisher runs Castorama and Brico Dépôt, sales saw a decline of 4.9% in Q1, with individual drops of 5.1% and 4.6% at each banner respectively. The company's Polish division experienced a slight revenue decrease of 0.4%, while its other international segment reported a revenue boost of 2.5%, reaching £164m. E-commerce sales for Kingfisher grew 9.3% during the quarter, with online sales now accounting for 20% of total sales. Kingfisher CEO Thierry Garnier stated: 'Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce. We have successfully completed the conversion of eight former Homebase stores, all of which will be operating under the B&Q banner by the end of May. France delivered sequential improvement, outperforming challenging market conditions, while Poland, as expected, experienced short-term volatility due to geopolitical factors.' For FY25/26, Kingfisher maintained its anticipated full-year adjusted profit before tax of £480m to £540m, with free cash flow projections ranging from £420m to £480m. The retailer does not foresee significant direct effects from potential shifts in cross-border tariffs as it does not have any sales or operations in the US. Kingfisher sources most products within Europe from the country in whicih they are sold and 20% to 25% of its products from Asia. However, it remains vigilant regarding broader impacts on inflation and market demand. Garnier added: 'It is still early in the year and consumer sentiment remains mixed across our markets. We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns. We are confident in delivering our full year guidance.' The company operates 1,900 stores and has a workforce of 76,000. In December 2024, Kingfisher disclosed the divestiture of its Brico Dépôt Romania business to domestic retailer Altex Romania. "Kingfisher's Q1 FY25/26 UK & Ireland sales up 5.9% amid favourable weather" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Examiner
28-05-2025
- Business
- Irish Examiner
B&Q opens three new stores in Ireland
B&Q and Screwfix owner Kingfisher reported a 1.8% rise in first-quarter same-store sales for Ireland and the UK after good weather boosted sales of garden furniture and barbecues. The FTSE-100 listed group, which also owns Castorama and Brico Depot in France and other markets, said it was sticking with its full-year forecast for adjusted pre-tax profit of £480m (€572m) to £540m (€643m). The group, which trades from over 1,900 stores, said like-for-like sales in the UK and Ireland rose 5.9% in the three months to April 30 but were down 3.2% in both France and Poland. However, Kingfisher said it won market share in all of those countries. "Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce," chief executive Thierry Garnier said. Sunny weather boosted overall retail sales in April and households grew cheerier this month, according to figures published last week that suggested consumer spending might be a bright spot in an otherwise drab outlook for the economy. However, in France, data showed consumer confidence hit a five-month low this month on growing worries about the economy and unemployment. Kingfisher noted that in the UK and Ireland, sales of seasonal products, such as garden furniture, barbecues and plants, jumped 28.3% year-on-year, largely due to better weather. But it cautioned that some of this growth was likely to have been pulled forward from the second quarter. In Ireland, B&Q opened three new stores at locations in Navan, Waterford and Letterkenny. The store openings follow the acquisition by B&Q of three leasehold stores, formerly trading as Homebase, for a purchase price of £3.2m (€3.79m). Collectively, the three will employ 109 staff, 51 of whom transferred from Homebase. Following a revamp and rebranding programme, the first of the new stores opened in Navan Retail Park. B&Q Waterford will open on Friday, followed by B&Q Letterkenny on Saturday. The acquisitions build on B&Q's existing network and bring to 11 its portfolio of stores in the Republic of Ireland. John Eason, B&Q Retail Director, Ireland said: 'This is a landmark moment for B&Q and is indicative of the confidence we have in the Irish market. Opening three new stores builds on the success of our existing eight stores in Ireland and the continuous and growing demand for home improvement products and services nationwide. 'We are so pleased that so many former Homebase colleagues have joined the B&Q family, and we look forward to working with them - alongside our 58 new team members – as we build an even stronger presence in the Irish market. We are also looking forward to welcoming DIY enthusiasts together with home improvement and trade professionals to our new stores, which is for everyone, whatever their home improvement needs.' Additional reporting Reuters Read More Bulmers owner C&C Group reports minimal impact from tariffs
North Wales Chronicle
28-05-2025
- Business
- North Wales Chronicle
Warm weather boosts B&Q's DIY and garden sales
The firm said recent sunshine saw demand rocket across its garden and seasonal ranges, helping UK and Ireland like-for-like sales jump 5.9% higher in the three months to April 30. Sales of seasonal products alone soared by nearly a third (29.8%) across B&Q and were 21.2% higher for Screwfix. Kingfisher said seasonal products accounted for more than a fifth (21%) of all group-wide sales in its first quarter. But it added that some of the strong sales growth was likely to have been 'pulled forward' from second-quarter trading. Kingfisher's update also showed that trading challenges remain across its operations in France, where it trades as Castorama and Brico Depot, as well as Poland, with sales down by 4.9% and 0.4% respectively in reported currencies. Overall, group-wide like-for-like sales lifted 1.8% on a constant currency basis and the group said it remains on track for full-year underlying pre-tax profits of around £480 million to £540 million. Kingfisher chief executive Thierry Garnier said: 'Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce.' But he added a note of caution despite the better-than-expected first-quarter figures. 'It is still early in the year and consumer sentiment remains mixed across our markets,' he said. Kingfisher also confirmed that it does not expect any direct hit from global trade tariff woes, as it has no US sales or operations and sources most of its products in Europe from the same country in which they are sold, while between 20% and 25% of items are also sourced from Asia. 'We therefore expect little direct impact from any potential changes in cross border tariffs, but remain watchful of any broader impact on both inflation and market demand,' it said. Despite the sales rebound, shares in Kingfisher fell 3% in morning trading on Wednesday, having risen strongly in recent weeks. Chris Beauchamp, chief market analyst at global trading and investing platform IG, said: 'It seems Britons' first impulse on seeing the sun is to start doing some DIY, if Kingfisher's results are any indication. 'Up 16% so far this year, the shares have been a haven from tariff volatility, though the update didn't offer much to extend the rally in the short term.'
Powys County Times
28-05-2025
- Business
- Powys County Times
Warm weather boosts B&Q's DIY and garden sales
B&Q owner Kingfisher has seen UK sales bounce back thanks to a warm weather boost for the DIY chain. The firm said recent sunshine saw demand rocket across its garden and seasonal ranges, helping UK and Ireland like-for-like sales jump 5.9% higher in the three months to April 30. Sales of seasonal products alone soared by nearly a third (29.8%) across B&Q and were 21.2% higher for Screwfix. Kingfisher said seasonal products accounted for more than a fifth (21%) of all group-wide sales in its first quarter. But it added that some of the strong sales growth was likely to have been 'pulled forward' from second-quarter trading. Kingfisher's update also showed that trading challenges remain across its operations in France, where it trades as Castorama and Brico Depot, as well as Poland, with sales down by 4.9% and 0.4% respectively in reported currencies. Overall, group-wide like-for-like sales lifted 1.8% on a constant currency basis and the group said it remains on track for full-year underlying pre-tax profits of around £480 million to £540 million. Kingfisher chief executive Thierry Garnier said: 'Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce.' But he added a note of caution despite the better-than-expected first-quarter figures. 'It is still early in the year and consumer sentiment remains mixed across our markets,' he said. Kingfisher also confirmed that it does not expect any direct hit from global trade tariff woes, as it has no US sales or operations and sources most of its products in Europe from the same country in which they are sold, while between 20% and 25% of items are also sourced from Asia. 'We therefore expect little direct impact from any potential changes in cross border tariffs, but remain watchful of any broader impact on both inflation and market demand,' it said. Despite the sales rebound, shares in Kingfisher fell 3% in morning trading on Wednesday, having risen strongly in recent weeks. Chris Beauchamp, chief market analyst at global trading and investing platform IG, said: 'It seems Britons' first impulse on seeing the sun is to start doing some DIY, if Kingfisher's results are any indication. 'Up 16% so far this year, the shares have been a haven from tariff volatility, though the update didn't offer much to extend the rally in the short term.'
