IREU 500

Screwfix digital-fuelled sales grow by more than 16%

Screwfix third-quarter sales grew by more than 16% thanks to, said parent company Kingfisher, its digital leadership.

Sales at the trade counter business, which is a Leading retailer in IRUK Top500 research, grew by 16.6% in total in the quarter to October 31, compared to the same time last year. Like-for-like sales, which strip out the effect of new store openings, were up by 10.2%.

The growth, said Kingfisher in its third-quarter statement, was down to its digital leadership, new outlets and new and extended specialist ranges.

B&Q UK and Ireland, meanwhile, a Top50 business in IRUK Top500 research, saw total sales fall by 2.8%, or 1.9% LFL, reflecting its programme to close unprofitable space. Seasonal sales were down by 7.1% on a like-for-like basis after a strong showing last year, while non-seasonal sales were down by 0.6%.

Overall Kingfisher’s UK and Ireland division reported sales of £1.3bn, up by 2.5% in total on the same time last year, while group sales of £3bn were 3% up on last time, reflecting positive performances in Poland (+11.9%) and Russia (+8/6%) but weaker growth in France (+0.4%).

Chief executive Véronique Laury said: “We have seen strong growth at Screwfix and Poland offset by continued weak sales in France, alongside some business disruption from our ONE Kingfisher plan, principally reflecting product availability and clearance. We continue to act on the causes of this disruption which we are confident will ease.

“We remain on track to deliver our full-year strategic milestones, for the second year in a row.”

The Kingfisher group is in the second year of a five-year transformation plan to bring all its businesses together onto one common IT platform and using common processes throughout the business. That transformation plan envisages Screwfix growing to a total of 600 stores, while Screwfix omnichannel systems are being used as a model throughout the group, and its business format is also being developed in the German market.

Laury added: “We remain confident in our ability to deliver our long-term plan and in the financial and customer benefits it will generate.”

Image credits:
  • Image courtesy of Kingfisher Group

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