Preliminary results for the year ended 29 January 2011

 

24 March 2011

 

Detailed 'Delivering Value Phase 1' Update

Progress to Date (Feb 2008 to Jan 2011) and Milestones for 2011/12

5. Turning around B&Q China

Progress to date

Repositioning plan on track. Annual losses of £62 million(1) at peak in 2008/09 have been reduced to £8 million with the business now positioned for potential break-even in 2011/12.

  • Appointed a new, highly experienced management team
  • Store portfolio rationalised from 63 to 41 of which 16 stores were downsized. All resulting space successfully sub-let
  • Central costs reduced by around 30% including one regional office closure
  • 16 of the remaining stores have been retro-fitted to offer customers an improved shopping experience and to broaden the appeal to existing home owners as well as new home buyers
  • 30% of ranges have been re-engineered from the previous 'supplier led' model to a more European 'customer led' retail model with encouraging results
  • Introduced direct sourced group own brands

2011/12 milestones

  • Continue the new format trial
  • Continue the work on re-engineering ranges including more direct sourced group own brands
  • Overall break-even target, subject to a stable Chinese home improvement market
  1. In constant currencies

Keep up to date

News
feeds

Subscribe to our RSS feeds and get the latest information as soon as it’s released

Sign up to our email alert service and get the latest updates delivered to your inbox

Follow us on Twitter to
keep up to date with the
latest corporate news

On the move

Live share price and news on our mobile site or Investor Relations iPad app