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B&Q sales continue to slump

B&Q has had to reduce prices to attract shoppers

B&Q has had to reduce prices to attract shoppers

17th February 2006

Sales at UK DIY chain B&Q have continued to fall, owner Kingfisher has said.

Like-for-like sales fell by 9 per cent to £850.3m in the 13 weeks to January 28. Like-for-like sales do not include sales from new store openings.

The 9 per cent decline followed an 8.4 per cent drop in the third quarter.

Total group sales rose by 5.6 per cent to £1.86bn. However, like-for-like sales across the Kingfisher group fell by 0.5 per cent.

"The UK home improvement market remains depressed and price competitive," said Kingfisher's chief executive Gerry Murphy.

"B&Q's new management team has acted decisively to support short-term trading, manage stocks and reduce costs at the same time as accelerating the development of B&Q's stores, ranges and services for the future."

Gerry Murphy, B&Q: "The UK home improvement market remains depressed and price competitive."

Outside the UK, like-for-like sales rose by 6.2 per cent, while total sales were up 17 per cent.

In France, where Kingfisher owns Castorama and Brico Depot, like-for-like sales increased by 2.5 per cent. Total sales in France rose by 3.9 per cent to £607m.

In Asia, like-for-like sales jumped by 8 per cent and total sales rose by a staggering 59 per cent.

Mr Murphy added: "Outside the UK, now half Kingfisher's sales and profits, strong growth continues and we are making good progress with our strategy of strengthening our position in major markets, rolling out developing businesses and moving into new high growth markets."

Kingfisher's trade business Screwfix Direct posted a 37.1 per cent rise in sales to £71.3m.

Looking ahead, the group said it expects full-year profits to meet current expectations.

Shares in Kingfisher fell by nearly 3 pence to 225 pence in early morning trade on the London Stock Exchange.



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