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22 July 2010

KBB sales down at B&Q

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Falling sales in kitchens, bedrooms and bathrooms are leading a slump in sales at B&Q caused by a 'weak consumer appetite' for big ticket purchases.


Parent compant Kingfisher, which also owns Screwfix, reported a 0.8% fall in like-for-like sales in the 10 weeks to July 10._In the UK and Ireland like-for-like sales at B&Q fell 4.3% although Kingfisher pointed out that a higher gross margin percentage was achieved on those sales.


It reported that sales of showroom - kitchens (including major white goods), bathrooms and bedrooms - and building categories were down while seasonal categories were flat. 

The sales dip, said Kingfisher, reflected fewer promotions and weak consumer appetite for bigger ticket purchases.


Kingfisher Group chief executive Ian Cheshire said in a pre-close update that the second quarter had produced a solid performance in an uncertain environment for customers right across Europe.


"Consumer spending remains under pressure, notably in the UK, and so we continued to focus on carefully targeting our promotions to drive profitable sales, improving our cash margins and vigorously controlling our costs."


However, he admitted the group remained cautious about the outlook for consumer spending.