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.

Photograph: Getty Images

 Managing Director of Conlumino

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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