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Creating a unified and unique offer

 
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“We will radically reorganise to operate as ONE company, moving to ONE offer and supply chain organisation with unified global functions for the first time.”

Arja Taaveniku
Chief Offer & Supply Chain Officer

We know that our customer needs are already more similar than different across all our markets. It therefore makes sense to create an offer for our customers that is complete, unified, unique and leading as ONE.

Today, our range is predominantly ‘local’. Our nine buying teams in our nine Operating Companies independently source their own ranges which they merchandise in their own way. Supplier agreements sit with each Operating Company alongside separately managed logistics networks. As a result, our offer is largely steered by a large number of suppliers in relatively small volumes, and is similar to other retailers. Our 7 billion of buying scale is therefore largely untapped.

Going forward, we will move to having a unified offer with the same products presented everywhere in the same way. This will create opportunities for efficiencies as well as investment in a better offer for our customers.

We have identified six leading ranges where we want to be the first choice in customers’ minds, which include bathroom and outdoor ranges.

To unlock our potential however, we need to change. We will radically reorganise to operate as ONE company, moving to ONE offer and supply chain organisation with unified global functions for the first time. This transition will involve training the skilled and enthusiastic people we have to learn new capabilities alongside recruiting deeper competence where we need it, in areas such as design and engineering.

This new organisational structure will enable us to roll out our unified and unique offer over the next five years, a time frame which will minimise risk. We have started already with unifying the first 20 categories within our ‘core essentials’ ranges (see case study). In addition to lower prices, the benefits to customers will include newer products, simpler ranges, better packaging, higher quality and better sustainability.

 

We are creating a unified and unique offer

Case study:
Core essentials

Core essential ranges are the home improvement basics and consumables that our customers see as universal.

These include batteries, light bulbs and sinks, which, in total, represent around a third of Kingfisher’s total buying scale. We have started with the first 20 categories (representing c.£0.6 billion of buying scale) and the early results are very encouraging.

These early results from the first categories support the business case for unifying our ranges, which provide significant benefits to customers. These benefits include simpler ranges, newer products, higher quality and lower prices, as well as improved sustainability.