We are committed to growing our e-commerce sales by offering speed, convenience and choice to our customers.
During the pandemic, we have seen rapid change in consumers’ shopping habits and preferences. We have been equally quick to adapt to these changes, accelerating our planned e-commerce initiatives to offer our customers more convenience, broader product choice and faster fulfilment of orders, powered by our store assets.
We believe we can add significant value for customers by offering them more product choice. Using scalable technology built by Kingfisher alongside Mirakl, the leading marketplace platform provider, we launched our first e-commerce marketplace on B&Q’s www.diy.com on 10 March 2022.
We believe that our OEB product development is a significant source of value for our retail banners and their customers. OEB provides a strong point of differentiation for our retail banners in terms of design, functionality, sustainability and value for money, as well as carrying a higher gross margin (on average) than branded products. We aim to grow our OEB sales further, as we bring even more innovation to our ranges and differentiation to our banners.
Our customers are using mobile more than ever, from research and inspiration, all the way through to purchase, delivery, building and installation. We believe that mobile will remain the most important way for customers to interact with us. We intend to make it easier for them to shop with us, by being mobile-first, data-led and focused on service. We also aim to provide customers with a more compelling and complete range of services, including visualisation tools and installation services.
Stores are a critical part of the home improvement market. Customers want to be inspired, to be able to visualise what they buy, and to get advice and design services from in-store experts. Stores also serve as a ‘one-stop shop’ for projects and allow us to provide customised services. Our c.1,470 stores will also play an integral role in meeting the increasing customer demand for convenience and speed, whether through fast C&C or home delivery.
The trade customer is an integral part of the home improvement ecosystem and a key priority for Kingfisher. While we already have strong and growing participation, there are significant opportunities to engage further with the trade customer. This includes continuing to roll-out trade counters, international expansion, digital enhancements, range expansion, loyalty programme optimisation, improved merchandising, more partnerships and new services.
We have identified significant opportunities to reduce costs across Kingfisher, with efficiency programmes in areas including store productivity, supply and logistics, goods not for resale (GNFR), property (including lease renegotiations), IT and central costs, all of which will benefit from a simpler organisation over time. In addition, through the intelligent use of our scale, we expect to extract further value from sourcing and buying. Reducing same-store inventory levels over the medium and longer term is also a priority.
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.