Booming Kingfisher to create more than 1,200 jobs
15 September 2011 12:54
Home improvement giant Kingfisher has announced that it is 'backing Britain' in the creation of more than 1,200 new UK jobs across its B&Q and Screwfix operations.
The news comes hot on the heels of strong half-year trading results.
The expansion plans will bring Kingfisher's total investment in the UK this year to £130 million, with a combined total of over 80 new Screwfix and B&Q stores being opened during 2011.
At Screwfix, the store opening programme is to be accelerated, creating 1,000 new jobs.
Forty new stores are to be opened by the end of January 2012, in addition to the 13 already opened this year.
The move comes following the successful trial of a slightly smaller store format designed for smaller, more densely populated urban areas.
Ian Cheshire, Kingfisher's group chief executive, said: "We are backing Britain, investing to grow our B&Q and Screwfix businesses in the UK, creating jobs and supporting local communities.
We have the balance sheet strength and financial flexibility to do this. Although the economic outlook is uncertain, this investment demonstrates our confidence in the UK's longer-term growth prospects."
Euan Sutherland, chief executive of Kingfisher UK & Ireland, said: "We are delighted to be bringing B&Q's choice, convenience and value to areas where B&Q has not been represented and adding extra jobs to the roles already safeguarded.
"At Screwfix, we have been trialling a smaller store format for some time and it has proved very popular with customers.
"The new format opens up a lot of new locations that would not otherwise have been possible. It gives us scope to expand the Screwfix network to over 300."
The good news on jobs followed Kingfisher's trading statement which showed half year sales up 3.8% in 26 weeks to July 30th, with adjusted pre-tax profits up 24% to £439 million.
The company stated that 'self-help initiatives' drove strong growth in each of its three main operating divisions, despite the difficult trading conditions.
Its French business saw a 23.9% increase in retail profits, with like-for-likes up 4.5%. In the UK and Ireland, Kingfisher enjoyed a 6.1% increase thanks it said to ongoing sourcing and cost initiatives.
Despite the impact of the Focus DIY stock clearance activity, B&Q still managed a 4.5% increase in profits, while Screwfix rather stole the show with a 25.3% profit jump.
The group's 'Other International' division, which includes businesses in Poland, Spain, Turkey, Russia, China and Germany, experienced a 24.7% surge in retail profits.
Commenting on the figures, Ian Cheshire said:
"We have delivered very strong profit growth in what are difficult times for all retailers.
With around two thirds of our profit coming from outside the UK, these results clearly show the value of geographic spread and the benefits of operating our market leading international businesses in a more unified way.
We delivered improvements right across the group including excellent sales and profit growth in France.
Our concerted efforts over the last few years to strengthen our balance sheet are paying off dividends, reducing our financing costs and creating the flexibility to take opportunities as they arise, such as our purchase of 29 great new sites for B&Q from the administrators of Focus DIY.
We continued to progress with our successful 'Delivering Value' programme and work is well under way as we continue our transition to the next phase of our self-help growth plan, called 'Creating the Leader'.
"Looking ahead, economic uncertainty throughout Europe is likely to impact consumer confidence, meaning conditions will remain challenging for retailers.
However, our plans already assumed little help from our markets and I am confident we will continue to outperform, benefiting from our well-established programme of self-help initiatives, international scale and breadth, and robust balance sheet."
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