Successful financial year

Kingfisher, Europe's leading home improvement retailer, recorded sales of £ 7.56 bn* for the 2004/05 financial year (to 29 January). This amounts to an increase of 8.7 per cent, or 9.9 per cent in constant currency. Like-for-like sales were up 3.9 per cent.
United Kingdom and Ireland
Total sales in the United Kingdom and Ireland grew by 4.8 per cent to £ 4.3163 bn, achieving 1.5 per cent growth in like-for-like terms. Kingfisher's B&Q retail format recorded total sales of £ 4.0877 bn. This amounts to 4.9 per cent growth, or 1.3 per cent like-for-like. Sales of flooring, lighting and wall decoration declined, though sales of kitchens and bathrooms saw slight growth. Especially strong results were provided by product categories that had recently been revised (e.g. paint and radiators) or where prices were lowered (e.g. building materials).
Before the start of the spring season the horticultural and garden leisure ranges have been radically revised, and own-brand paint, flooring and shower ranges improved. Innovative and price-competitive products are being introduced. What is more, an "everyday low pricing" campaign was launched in early February: the prices of 5 000 items were reduced to consolidate B&Q's price leadership.
In the fourth quarter came the opening of two new format B&Q Warehouse stores. These are testing a product offer geared to skilled trade customers and new ways of providing consumers with home improvement inspiration. The mini-Warehouse conversion programme continued, so that there were 63 such outlets at the end of the financial year.
France
Kingfisher grew sales in France by 9.4 per cent to £ 2.5467 bn (12 per cent in constant currency, 7.7 per cent like-for-like).
Castorama's sales rose by 1.9 per cent (4.4 per cent in constant currency) to £ 1.5711 bn. The company recorded sales up by 2.6 per cent in like-for-like terms. Stores that had been revamped to the new format in 2004 performed well, according to the company, as did new ranges of gardening equipment, Christmas decorations and heating lines.
Discounter Brico Dépôt continues to provide the momentum for growth in France, generating sales growth of 24.1 per cent in the recently completed financial year for a total of £ 975.6 mio. The increase came to 27.1 per cent in constant currency and 17.7 per cent like-for-like. All categories performed well, according to Kingfisher. The performance was boosted by further promotional mailings that built on the success of the first fully national catalogue.
Rest of world
Sales in Poland, Italy, China and Spain grew by 32.6 per cent to £ 786.6 mio (38.6 per cent in constant currency, 6.5 per cent like-for-like).
It was a difficult year for Castorama in Poland. Even though sales were up 12.7 per cent (16.1 per cent in constant currency) to £ 321.9 mio, like-for-like volume growth amounted to no more than 2.9 per cent. As in the third quarter, like-for-like sales declined sharply in the fourth quarter as well (- 14.2 per cent). The higher VAT rate introduced in May 2004, along with rising interest rates and inflation, all contributed to a decline in consumer spending.
In Italy Castorama sales were up by 32.1 per cent to £ 229.5 mio. The increase came to 35.3 per cent in constant currency, and sales in like-for-like terms were 6.1 per cent up on the previous year.
Sales in China were up 61 per cent to £ 211.7 mio. Growth came to 78.5 per cent in constant currency and 15.5 per cent like-for-like. This growth was driven by increasing sales to trade customers and greater demand for installation services.
In Spain Kingfisher had four Brico Stock outlets at the end of the year, which generated total sales of £ 23.5 mio.
*£ 1 = € 1.45309
Download: