Our retail banners occupy number one or two positions in all 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 plan to accelerate our e-commerce sales, with the ambition of reaching 25% e-commerce sales penetration. We will do this by building on our progress over the last three years to further enhance speed, choice and convenience for our customers, supported by our e-commerce marketplace and data-led propositions. Furthermore, as we facilitate the development of more customer-centric digital tools and services, this will drive the growth of our digitally-enabled sales*.
We are increasingly embedding data within Kingfisher. Our banners are leveraging data to build customer-centric tools and solutions, support better commercial decision-making, and unlock significant new sources of revenue and profit for the Group.
We believe that 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, innovative and sustainable solutions, at affordable prices. 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.
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, international expansion, digital enhancements, range expansion, loyalty programme optimisation, improved merchandising, more partnerships and new services.
Stores play a critical role in the home improvement market. They serve as a ‘one-stop shop’ for projects, enabling customers to be inspired, to visualise and ‘try before they buy’, and receive customised advice and services from in-store experts. Over the last three years they have also played an integral role in meeting elevated demand via e-commerce channels, whether through fast C&C or delivery to where the customer wants it. We believe that compact stores will play an increasingly crucial role in addressing the consumer need for both speed and 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.
We are committed to leading our industry in responsible business practices. 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, in particular in the UK and France where the governments have made ‘net zero’ commitments. The ongoing energy crisis adds weight to the urgent need for governments to increase their support of greener homes and energy efficiency.
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 are adopting a ‘done is better than perfect’ mindset in order to move faster and with more agility, given the rapidly changing environment in which we do business. We also realise the need to be leaner and more productive, and are making changes to lower our costs and same-store inventories. And through the use of our scale, we expect to extract further value from sourcing and buying.
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