Kingfisher in BBQ lift but still cautious
KINGFISHER, Europe’s biggest home improvements retailer, said yesterday a surge in sales of garden furniture and barbecues during warm spring weather had not changed its cautious outlook on consumer spending.
The group, which runs market leader B&Q in Britain as well as Castorama and Brico Depot in France, said yesterday shoppers in Britain in particular remained under pressure from higher prices and austerity measures, and the recent flurry in spending was probably just brought forward from the summer.
Kingfisher, with 860 stores in eight countries in Europe and Asia, said retail profit jumped 19 per cent to £174m.
Like-for-like sales at B&Q were up 1.5 per cent, the best performance for seven quarters. But the gross margin was down slightly, because sales were skewed to less profitable lines.
“Whilst we have got off to a good start, it remains our view that this year is likely to be a tough one for all retailers, especially in the UK,” chief executive Ian Cheshire said.
B&Q sold 2,500 miles of hosepipe as Britain enjoyed the warmest April on record. Patriotic shoppers also snapped up over 10,000 royal wedding gnomes.