Our plan

 
Our plan

In January 2016 Kingfisher announced the ONE Kingfisher plan. This plan will leverage the scale of the business by creating a unified company, where customer needs always come first.

The focus over the five years of the plan will be on three key pillars: creating a unified, unique and leading home improvement offer; driving our digital capability; and optimising our operational efficiency. Overall, this five year transformation plan aims to deliver £500 million of sustainable annual profit uplift by Year 5, over and above 'business as usual'.

By this we mean that without the transformation we would expect performance to be broadly in line with the macro-economic backdrop in our respective markets. Until we have unified our customer offer, we will have limited expansion. In addition, the total expected cash cost of the transformation is £800 million, with a capital return of £600 million over the first three years.

Our ambition is to become the leading home improvement company.

A five year plan where we will:

  • Leverage the scale of the business

  • Create a unified company

  • Put customer needs first always

Our transformation

Unique & unified offer

We know that our customer needs are already more similar than different across all our markets, so we are unifying our offer, with the same products, available everywhere. This will deliver significant customer benefits, such as newer products, higher quality, better sustainability, lower prices and simpler ranges. It will also deliver significant business benefits, such as higher sales, fewer stock keeping units (SKUs), fewer suppliers, cost price reduction (CPR) and improved processes.

Driving our digital capability

This consists of two programmes:

  • investing in our core ecommerce platforms by leveraging our Screwfix best-in-class capability; and

  • building capability to provide customers with digital services that will help them with more stages of their home improvement projects.

Implementation of a unified IT system is a key enabler of our ONE Kingfisher plan. It also provides a significant opportunity, with a seamless and stronger digital offer for our customers, to substantially increase sales and digital penetration.

Operational efficiency

The biggest opportunity is in unifying around 90% of our £1.2 billion goods not for resale (GNFR) spend. This programme is a combination of cost savings, and an opportunity to work in a simpler and more effective way across the business.

Our road map

We have a clear longer-term road map for our strategy, aligned to three key strategic pillars: creating a unified, unique and leading offer, driving our digital capability and optimising our operational efficiency, alongside work on our retail operations.

Roadmap

OUR PROGRESS

The second year of our five year plan has been another year of good progress. We have delivered the key strategic milestones for the second year.