Preliminary results for the year ended 29 January 2011


24 March 2011


Detailed 'Delivering Value Phase 1' Update

Progress to Date (Feb 2008 to Jan 2011) and Milestones for 2011/12

5. Turning around B&Q China

Progress to date

Repositioning plan on track. Annual losses of £62 million(1) at peak in 2008/09 have been reduced to £8 million with the business now positioned for potential break-even in 2011/12.

  • Appointed a new, highly experienced management team
  • Store portfolio rationalised from 63 to 41 of which 16 stores were downsized. All resulting space successfully sub-let
  • Central costs reduced by around 30% including one regional office closure
  • 16 of the remaining stores have been retro-fitted to offer customers an improved shopping experience and to broaden the appeal to existing home owners as well as new home buyers
  • 30% of ranges have been re-engineered from the previous 'supplier led' model to a more European 'customer led' retail model with encouraging results
  • Introduced direct sourced group own brands

2011/12 milestones

  • Continue the new format trial
  • Continue the work on re-engineering ranges including more direct sourced group own brands
  • Overall break-even target, subject to a stable Chinese home improvement market
  1. In constant currencies