Europe update
Online sales grow for Kingfisher
Screwfix mobile sales deliver for Kingfisher
Screwfix mobile sales deliver for Kingfisher
 
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BUKI store conversion program halted and Kingfisher is being proactive about its pay gap
HNN Sources
Kingfisher experiences strong digital growth in the last financial year; there will be no more store Homebase store conversions in the UK until Wesfarmers' review has been completed; and the gender pay gap is acknowledged at Kingfisher.
Digital delivers for Kingfisher despite profit fall

Home improvement group, Kingfisher has reported that total sales increased 3.8% to GBP11.6 billion, up from GBP11.2 billion, for the year ended 31 January 2018. However it posted a 10.1% fall in annual pre-tax profits to GBP682 million, but saw underlying profits edge 1.3% higher to GBP797 million.

Like-for-like sales were down 0.7% year-on-year at constant currencies, to GBP11.7 million.

Its annual results has been impacted by softer sales from its UK chains, Screwfix and B&Q, in the fourth quarter. The slowdown was due to less demand for big ticket items - such as kitchens - as the housing market cooled and as consumers hit by higher inflation and stagnant wage growth cut back on spending.
Screwfix digital

Over the year, total sales at Screwfix grew by 16.7% to GBP1.5 billion and by 10.1% on a like-for-like basis, as mobile sales soared by 86% and click and collect by 38%. Sales from specialist trade desks exclusive to plumbers and electricians also grew. But in the fourth quarter, sales slowed to 7.1% on a like-for-like basis. By the end of the financial year, 60 new outlets were opened, reaching a total of 577. Kingfisher said it aims to have 700 Screwfix outlets in the UK.

Screwfix continued to offset sales woes at B&Q, with price inflation also providing a boost.
B&Q

Sister company B&Q saw sales fall by 5.3% to GBP3.5 billion during the year, following a store closure program which has seen it shut 65 shops and cut around 3,000 jobs in the UK and Ireland over the last two years. Sales were down by 2.8% on a like-for-like basis associated with the store closures.

However, digital sales grew by 11% to represent 4% of total sales. More than 33,000 B&Q products can now be collected via click and click, including 29,00 for one hour pick up.

A new B&Q mobile app launched in September 2017 which "is delivering improved average transaction values", according to the company. The first of its digital home improvement services has also launched, including a bathroom planner tool.
Castorama and Brico Depot

Kingfisher trades as Brico Depot and Castorama in France. Castorama total sales fell 1.9% (like-for-like sales declined 2.4%) to GBP2.4 billion. Brico Depot total sales fell 4.2% (like-for-like sales declined 4.8%) to GBP1.9 billion. Across the two businesses, two new stores opened and one was revamped. Kingfisher said it is encouraged by the market in France, "although it is volatile".
Other international sales

Sales in Poland grew 6.3% (like-for-likes increased 5.3%) to GBP1.3 billion. Russia sales fell 3.7% to GBP391 million and Spain sales dropped 4.8% to GBP316 million.

Romania, Portugal and Germany saw sales of GBP174 million. A further roll out of Screwfix Germany is on hold this year pending completion of the unified IT platform roll out.
ONE Kingfisher progress

Kingfisher is coming into the third year of a five-year transformation plan. More than 50% of its group sales now operate on one unified IT platform. Six per cent of sales took place online in its latest financial year, up from 4% a year earlier.

There has been an 80% reduction of SKUs and suppliers as part of the "ONE Kingfisher" strategy. Kingfisher said "business disruption" knocked around 1.5% off its group-wide like-for-like sales as it was left with stock availability problems amid efforts to clear out old stock. But it had "acted on the root causes of business disruption".

Chief executive officer, Veronique Laury insists her turnaround was beginning to bear fruit and said it was set to deliver a GBP500 million boost to annual profits by the end of 2020-21.
BUKI store conversion halted

The program that saw a number of stores (23) changing from Homebase to the Bunnings' format has stopped as Wesfarmers reviews what to do about staying in the UK. The most recent store openings have been in Somerset, Walton-on-Thames and Sprowston.
Somerset

Bunnings officially opened its doors in Frome, Somerset, replacing the Homebase store at Wessex Fields. Former skeleton racer and Olympic gold medallist, Amy Williams, helped to open the 47,000 square feet store.

Complex manager, Mandy Wilkinson said Bunnings team members have helped with projects in the Frome area ahead of the official opening. These include painting a classroom for students at St John's First School and giving the doors of the local YMCA a fresh coat of paint.
Walton-on-Thames

A new Bunnings store measuring 34,000 square feet has opened on the site of the former Homebase store in Walton-on-Thames, a large affluent market town located on the River Thames in the Elmbridge borough of Surrey. Kelly Smith, former England footballer, helped to launch the store.

Bunnings in-store staff have assisted with projects in the local area including fixing the scout hut guttering for the Walton Sea Scouts and painting planters and repairing shed roofing for students at Walton Oak School.
Sprowston

Bunnings' newly opened store in Norwich, Sprowston is among the first Homebase branches to be re-branded to Bunnings as part of the pilot scheme. To celebrate the opening, former Premier League footballer Grant Holt joined a welcome breakfast for team members.
Kingfisher addresses gender pay gap

Kingfisher has reported a 9.6% mean gender pay gap for fixed hourly pay across its 34,000 UK employees as at 5 April 2017. This is based on data across the retail group's four legal entities in line with the British government's gender pay gap reporting regulations. The entities Kingfisher has reported on include B&Q, Screwfix Direct, Kingfisher Information Technology Services and Kingfisher Corporate.

Kingfisher has attributed its gender pay gap to the fact that it has a lower level of female representation in senior roles across the business. Typically, senior positions attract higher pay and bonuses and the majority of these job roles are currently held by male employees.

To tackle its gender pay gap, Kingfisher is reviewing its employee benefits for parents, making more senior job roles open to flexible working and reduced hours opportunities, changing the way in which job adverts are written and introducing new programs to help support women returning to work.

In addition, as part of the organisation's leadership development programs, Kingfisher will help leaders to understand the importance and benefits of building inclusive teams, as well as understand the implications around unconscious bias. The organisation has also signed up to the 30% Club, which aims to achieve having a minimum of 30% of women on its board.
Guidelines

The gender pay gap reporting regulations require organisations in Britain with 250 or more employees to publish the difference between both the mean and median hourly rate of pay for male and female full-time employees; the difference between both the mean bonus pay and median bonus pay for male and female employees; the proportions of male and female employees who were awarded bonus pay; and the proportions of male and female full-time employees in the lower, lower middle, upper middle and upper quartile pay bands.

Kingfisher's median gender pay gap for fixed hourly pay as at 5 April 2017 is 2.5%.

Its mean gender pay gap for bonuses paid in the year to 5 April 2017 is 33.2%, and the median gender pay gap for bonus payments is 0.1% in favour of female employees. Over this period, 62.3% of female employees received a bonus payment compared to 60.7% of male employees.

More than a third (37.3%) of employees in the highest pay quartile at Kingfisher are female, compared to 43.5% in the second quartile, 46.4% in the third quartile and 46.9% in the lowest pay quartile.

Kingfisher is also considering ways to analyse its gender pay gap across the organisation internationally, as well as exploring how it can investigate pay gaps across different ethnicities and other characteristics. This is to ensure that the organisation pro-actively manages its pay fairly and equitably.
HNN Sources


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