Kingfisher, which owns B&Q and Screwfix, has announced plans to increase annual profit to £500 million in the next five years.
The multinational retail giant also said it planned to return £600m of capital to shareholders over the next three years.
The ‘ONE’ Kingfisher plan was unveiled ahead of an investor’s capital markets day in London today (January 25).
Last year, the company reported profit falls of 11.8% to £225m in the 13 weeks to November 1, with total sales down 3.6%. It also announced plans to close 60 of its 360 B&Q stores in the UK, but planned to open an additional 200 Screwfix stores.
Kingfisher said its five-year transformation would have limited expansion, with medium-term focus being Screwfix Europe.
Kingfisher chief executive Véronique Laury said: “Following an in-depth review of Kingfisher’s business last year, alongside in-depth studies of our customers’ home-improvement needs, the leadership team announced the ‘ONE’ Kingfisher plan. This plan will leverage the scale of the business by becoming a single, unified company where those customers needs always come first.
“We are excited to now reveal our new strategy and our focus over the next five years, based on the three key pillars of creating a unified, unique and leading home-improvement offer, driving our digital capability and optimising our operational efficiency.
“With a clear roadmap now in place, alongside clear long-term targets – the size of the five-year opportunity is significant. We do acknowledge the challenges ahead. However, having already made good progress since March last year, and with 80,000 committed colleagues, we feel confident about our plan and look forward to moving on to the first year of our transformation.”