Kingfisher’s transformation plan, which commenced in FY 16/17, has centred around leveraging the scale of the Group for the benefit of its customers and the wider business. The transformation activity has concentrated on: creating a unified, unique and leading home improvement offer; driving digital capability; and optimising operational efficiency. The aim of the transformation is to build a strong foundation from which the Group can create a superior customer proposition, adapt to changes in consumer shopping habits and deliver more profitable growth.
After three and a half years of transformation activity, the business has been significantly reorganised including establishing a single buying organisation to leverage the buying scale of the Group. 59% of product ranges (COGS) have been unified. Alongside sourcing benefits, this unified approach has also allowed the Group to leverage its deep understanding of customer needs to create its own exclusive brands and develop ‘unique’ ranges offering differentiated design, high functionality, and quality at an affordable price. Sales from unique ranges are a small but growing proportion of overall sales today.
Kingfisher is transforming its digital capability through its unified IT platform to deliver long-term operational efficiency and customer benefits. The rollout of the base platform is substantially complete. Digital sales for the Group now account for 7% of Group sales.
The scale of the Group is also being leveraged to implement a number of operational efficiency initiatives, including a shared services centre established in Poland. In excess of £100m of savings have been delivered over the last three and a half years.