Kingfisher's results are looking sunnier

But they need to tackle their weakness: DIY.

Kingfisher has revealed that total sales across its UK & Ireland fascias – B&Q and Screwfix – increased +3.6 per cent during the 10 weeks to 13 July 2013, with LFLs growing +2.5 per cent.

This update is certainly a sunnier one for Kingfisher. One of the hottest UK summers for many years has brought with it a surge of spending on gardening and outdoor products.  This more positive update comes off the back of a torrid Q1, where notably miserable conditions across the retailer’s key European locations negatively impacted growth during the traditionally critical Easter period. Moreover, while weakness in its core DIY categories continues to represent a cloud on the horizon, Kingfisher is being proactive in its response.

In the UK, this period saw B&Q benefit strongly from the more positive weather, with higher demand for gardening products and outdoor furniture. For example, B&Q saw sales of wooden outdoor furniture grow 56 per cent, while natural stone tiles were 6 per cent ahead. A more austere British consumer is increasingly looking to make the most of their gardens, with BBQs and dinner parties being viewed as attractive alternatives to going out to bars and restaurants. Indeed, while the performance of outdoor categories will inevitably continue to be heavily shaped by seasonal fluctuations, the more frugal post-recessionary consumer mindset means that these categories will present significant opportunities.

Kingfisher is being proactive in its response to weakness across its core DIY categories, which continue to struggle amid weakness in the housing market and generally low consumer interest. To this end, B&Q is gaining market share off the back of investment in stores, a focus on value and the continued development of ranges and services. Moreover, a recent deal with Morrisons to share space in Meir Park, Staffordshire, reflects an understanding of the long term necessity to reduce space in response to structural changes and overcapacity in the UK DIY category. Elsewhere, Kingfisher’s UK trade fascia, Screwfix has achieved a strong Q2 performance, boosted by new outlets and competitive pricing. 

Kingfisher faces a number of challenges to overcome in the medium-long term. Most notably, until the housing market improves significantly, consumer interest in DIY will remain weak.  Linked to this, while the ultimate potential of the Coalition’s Help To Buy scheme remains uncertain, the early signs have been promising. Indeed, we do believe the DIY market will eventually reach a stable and settled level towards the back end of next year. In relation to Kingfisher itself, we retain our view that while it is a victim of circumstance the company is both well run and proactive. Investments in stores, a focus on value and the continued development of ranges and services put it in a strong position to grab share and take advantage of the upturn, when eventually materialises.

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Zac Goldsmith to quit as Tory MP after Heathrow decision announced

The environmentalist is expected to stand as an independent candidate.

Zac Goldsmith, the MP for Richmond Park and North Kingston, and a committed environmentalist, has announced his resignation after the government backed a third runway at Heathrow. 

He has told his local Conservative association of the decision, according to The Huffington Post. The group has reportedly agreed to back him as an independent in a by-election.

Goldsmith tweeted: "Following the Government's catastrophic Heathrow announcement, I will be meeting my constituents later today before making a statement."

Goldsmith had previously pledged to resign if the government went ahead with the decision. By quitting, he will trigger a by-election, in which he is expected to stand as an independent candidate. 

Speaking in the Commons, he said the project was "doomed" and would be a "millstone" around the government's neck. He said: "The complexities, the cost, the legal complications mean this project is almost certainly not going to be delivered."


However, there is no guarantee it is a by-election he will win. Here's Stephen Bush on why a Richmond Park and Kingston by-election could be good news for the Lib Dems.

After years of speculation, the government announced on Tuesday it was plumping for Heathrow instead of Gatwick. Transport secretary Chris Grayling called it a "momentous" decision.

The announcement will please business groups, but anger environmentalists, and MPs representing west London constituencies already affected by the noise pollution. 

In a recent post on his constituency website, Goldsmith highlighted the noise levels, the risk of flying so many planes over densely-populated areas, and the political fallout. He declared: "I promised voters I would step down and hold a by-election if Heathrow gets the go-ahead and I will stand by that pledge."

Once a Tory "nice boy" pin up, Goldsmith's reputation has suffered in the past year due to his campaigning tactics when he ran against Sadiq Khan for London mayor. Advised by strategist Lynton Crosby, Goldsmith tried to play on racial divisions and accused Khan of links to extremists. Despite enjoying support from London's Evening Standard, he lost.

The former mayor of London, Boris Johnson, once declared he would lie down "in front of those bulldozers" but has toned down his objections since becoming foreign secretary.

Green MP Caroline Lucas urged him to follow Goldsmith and resign, so he could team up with her in opposing the extension at Heathrow.

Labour, in contrast, has welcomed the decision. The shadow Transport secretary Andy McDonald said: “We welcome any decision that will finally give certainty on airport expansion, much needed in terms of investment and growth in our country." He urged the government to provide more detail on the proposals.

But London's Labour mayor Sadiq Khan accused the government of "running roughshod" over Londoners' views. He said: "Heathrow expansion is the wrong decision for London, and the wrong decision for the whole of Britain."

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.