Our strategy

Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive to help make that happen.

Put simply, our strategic plan – ‘Powered by Kingfisher’ – aims to maximise the benefits of combining our distinct retail banners (which serve a range of different customer needs) with the scale, strength and expertise of the Kingfisher Group.

The differentiation of our retail banners across trade (Screwfix, TradePoint), discounters (Brico Dépôt France, Brico Dépôt Iberia), and more general DIY needs (B&Q, Castorama France, Castorama Poland, Brico Dépôt Romania, Koçtaş) is a unique strength for us; more so in a more volatile and uncertain world. Equally, Kingfisher’s scale and resources are a critical source of competitive advantage for our banners, providing product development and supply (through our industry-leading own exclusive brands), access to leading-edge technology, digital and data capabilities, as well as international support, sourcing and buying scale.

We are continuing to invest for growth in multiple areas of the business, underscoring our confidence in the medium to longer-term outlook for home improvement growth in our markets. We are pleased with the progress we have made over the last year, against the backdrop of what remains an extraordinarily challenging macroeconomic and consumer environment in our markets.

Grow by building on our different banners

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Our retail banners occupy number one or two positions in our key markets. These banners address a diverse range of customer needs, each operating different models tailored to these needs, with clear positionings and plans. Our goal is to grow by building on our different formats in existing and new markets, leveraging the power of Kingfisher. We believe net space growth will drive an uplift in sales of c.+1.5% to +2.5% per annum over the medium term.

Grow by building on our different banners proof points

Screwfix stores opened in the UK and Ireland

Screwfix stores now open in France

Castorama Poland stores opened

Figures from full year results ended 31 January 2024

Accelerate e-commerce through speed and choice

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We will continue to grow our e-commerce sales and participation, with the ambition of reaching 30% of Group sales from e-commerce channels (one third of which from marketplace). We will do this by offering our customers ‘speed’ – faster fulfilment of orders through leveraging our store estate – and ‘choice’ – broader product choice, including via our e-commerce marketplace propositions. This will be supported by the ongoing modernisation and simplification of our technology landscape, which is unlocking the rapid development of more customer-centric and personalised mobile apps, digital tools and services.

Accelerate e-commerce through speed and choice proof points

+6.4%

e-commerce sales growth

£154

B&Q’s marketplace gross sales

93%

of orders picked from stores

38%

marketplace participation at B&Q in January 2024

Figures from full year results ended 31 January 2024

Build a data-led customer experience

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Powered by Kingfisher, our banners are leveraging data and artificial intelligence (AI) to build customer-centric tools and solutions, support better commercial decision-making and higher productivity, thereby unlocking significant new sources of revenue, profit and cash. In addition, with c.1bn customer visits per annum across our e-commerce touchpoints, we believe that many of our suppliers – including leading national and international home improvement brands – could become advertisers. Over time, we see the potential for retail media revenues to reach up to 3% of the Group’s total e-commerce sales.

Build a data-led customer experience proof points

>10%

of B&Q’s e-commerce sales from product recommendations

c.1 bn

customer visits across our e-commerce touchpoints annually

Figures from full year results ended 31 January 2024

Differentiate and win through own exclusive brands (OEB)

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Our OEB product development is a significant source of value for our retail banners and their customers. OEBs provide us with the ability to differentiate ourselves from the rest of the market by delivering simple and innovative solutions at affordable prices, with a focus on reducing environmental impact. OEBs also carry a higher gross margin (on average) than branded products. We aim to grow our OEB sales further as we bring even more innovative and affordable solutions to our customers.

OEB proof points

45%

of Group sales

+21%

of Group sales from five leading OEB brands

60%

of OEB sales from Sustainable Home Products

Figures from full year results ended 31 January 2024

Develop our trade business

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Trade customers are an integral part of the home improvement ecosystem and a key priority for Kingfisher. Trade customers tend to visit more frequently and spend more than the average retail customer. The significant opportunities to engage further with trade customers include the further roll-out of trade counters and expansion across our banners, range expansion and improved merchandising, building deeper relationships with trade customers, new services, loyalty programme optimisation and digital enhancements. We are aiming to reach more than £1bn of sales at TradePoint in the UK & Ireland, and double trade sales penetration in France and Poland, over the medium term.

Develop our trade business proof points

new TradePoint counters opened in B&Q stores

Brico Dépôt France stores launched a trade loyalty programme

Castorama Poland stores trialling CastoRent tool rental service

Figures from full year results ended 31 January 2024

Roll out compact store formats

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Our home improvement banners operate over 1,900 stores across eight countries in Europe. They play an integral role in meeting the demand for fast fulfilment via e-commerce channels, whether through C&C or delivery, to where the customer wants it. Compact stores are also playing an increasingly crucial role in addressing the consumer need for convenience. Through compact store expansion, our ambition is to grow market share, optimise our overall store footprint, and to grow sales densities and store profitability.

Roll out compact store proof points

new compact stores opened in the UK, France and Poland

B&Q Local stores open across London

Figures from full year results ended 31 January 2024

Lead the industry in Responsible Business and energy efficiency

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We are committed to leading our industry in responsible business practices and energy efficiency. Building on our strong Environmental, Social, and Governance (ESG) credentials, our ‘Powered by Kingfisher’ strategy sets out four priority areas for Responsible Business where we can maximise our positive impact on the lives of our customers, colleagues, communities, and the planet. As the ‘green homes’ agenda accelerates, we see considerable potential for our Sustainable Home Products.

Lead the industry in Responsible Business and energy efficiency proof points

49.4%

of Group sales from Sustainable Home Products

28.6%

of senior leaders are women therefore improving overall gender balance

3.2m

people helped through charitable partnerships and banner Foundations since FY 16/17

62.0%

Reduction in carbon footprint for our own operations against FY 16/17 base year

Figures from full year 2023/24 results ended 31 January 2024.

Human, agile and lean

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To deliver the best possible service to our customers and ensure our colleagues are engaged, fulfilled and able to realise their full potential, we are building a culture based on trust, agility, inclusion and curiosity. We have adopted a ‘done is better than perfect’ mindset to move faster and with more agility, given the rapidly changing environment in which we do business. And we continue to focus on becoming leaner and more productive, as well as lowering our same-store inventories.

Human, agile and lean proof points

store right sizings completed in France over the last two years

eNPS score, setting Kingfisher within the top 5% of worldwide retailers

Figures from full year results ended 31 January 2024