Strong growth abroad

Kingfisher meanwhile achieves more than half of its sales outside the United Kingdom, which resulted in a sales increase of 8 per cent in constant currency to £ 9.364 bn (€ 13.552 bn) for the 2007/08 financial year, while like-for-like growth came to 2.6 per cent on the previous year. In the United Kingdom B&Q achieved a like-for-like sales increase (+0.6 per cent) for the first time in three years. Sales came to £ 3.9 bn (€ 5.644 bn) overall, which amounts to growth of 2.7 per cent. The DIY retailers in France experienced positive development. The group announces sales growth at Castorama of 4.1 per cent to £ 1.7 bn (€ 2.460 bn), or 3.7 per cent like-for-like. Brico Dépôt’s sales of £ 1.5 bn (€ 2.171 bn) put it 11.4 per cent ahead of the previous year. Like-for-like growth was just 1.4 per cent, which the group explains by its decision to open new stores in catchment areas that are already occupied. Eight new stores were opened altogether, including three converted Castorama outlets. In the rest of Europe Kingfisher opened 17 new stores in six countries: seven in Poland, five in Turkey, two each in Russia and Italy, and one in Spain. The DIY retail business developed extremely positively for the group in Poland: the Castorama stores grew sales by 31.1 per cent to £ 703 mio (€ 1.017 bn), and recorded an increase of 22.5 per cent like-for-like. Among the seven newly opened stores there is a Brico Dépôt, the second in this format, which is geared to commercial customers. Sales in Italy tended downward. They came to £ 314 mio (€ 454 mio), which amounts to a decline of 1.2 per cent, or 2.4 per cent like-for-like. The number of stores went up to 28 after one new opening. Kingfisher announces the opening of one new B&Q in Ireland in the first six months, as well as sales growth of 6.8 per cent. Expansion continued in Spain with the opening of a new Brico Dépôt store, and in Russia as well, where two Castorama stores were launched. Kingfisher reports a doubling of sales for the five stores in Russia over the previous year, and like-for-like growth of 25.6 per cent. The group announces the continuing strong growth of sales and profits for Koçtas in Turkey, in which Kingfisher has a 50 per cent stake. The number of stores there rose from five to 15. Operations in Asia underwent restructuring. Kingfisher sold its 50 per cent stake in B&Q in Taiwan to its joint venture partner Test Rite at the beginning of January 2008, and the two trial stores in Korea were closed down at the end of 2007. B&Q’s sales in China came to £ 465 mio (€ 673 mio) in the 2007/08 trading year, which amounts to growth of 7.9 per cent on the previous year following four new openings. By contrast, the company reports poor progress in terms of like-for-like sales.