DIY Trends Stimulate B&Q Profits

admin — Mon, 21 Sep 2009 15:04:57 +0000

Kingfisher, which is the parent company of popular nationwide DIY goods supplier, B&Q, announced yesterday that it has enjoyed increased profits in the six month period ending 1st August 2009. In fact, the retail group has published half-year pre-tax profits of just over £288m, which represents an annual increase of around 34% or £74m.

Clearly, any business that has enjoyed massive profits at the height of a recession is operating in a market that has been largely unaffected by the economic downturn. In this case, Kingfisher’s increased profits further evidence claims that home-owners and property developers have opted for home improvements as a means of surviving a depressed housing market.

Furthermore, according to one Kingfisher source, the increase in profits are a clear indication of “renewed consumer interest” in DIY, which is not only seen as a way to improve existing living conditions but also one that can help improve the potential value of a home. However, whilst Kingfisher’s profits have also been stimulated by French home improvement chain, Castorama, there are other reasons that could explain the success besides increased consumer DIY activity. Indeed, the closure of MFI, formerly one of B&Q’s chief rivals in the home improvement sector, has no doubt pushed trade in Kingfisher’s direction.

Moreover, Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, told the BBC that Kingfisher’s “fine performance” was partly due to “seasonally good weather… and the revamping of its offerings”. Part of this revamping was introduced a year ago when B&Q implemented a scheme to cut empty shelf space by 25%, increase its product range substantially and to significantly cut operation costs – a far cry from B&Q’s board restructuring of 2005 that was brought about by decreased sales.

UK Housing Market Recovery: a False Dawn?

Homebase and B&Q – At War for Your Business!

admin — Tue, 21 Jul 2009 10:20:47 +0000

According to the Mirror, Homebase and B&Q are literally at war! As we get progressively deeper into the summer, the leading DIY rival firms are going head to head for your business! This is fantastic news for consumers, as if it ends up anything like the Supermarket wars, we could see the rival firms slashing prices in a bid to get feet through their doors!

Lets take a look at similar items from the warring DIY warriors, and see who comes up top!

If you are looking for a cast iron Chimenea for your garden, who can give you the best deal? Well, a Maya Cast Iron Chiminea with an antique bronze finish will set you back £69.99 from Homebase. Whereas B&Q can offer you a Baha Black Cast Iron Chimenea, for only £59.98! A saving of just over tenner!

But, in many ways it may just come down to convenience (or cost of petrol to get there), take for example the Flymo Micro Lite Electric Hover Mower. Homebase have it priced at £34.99, and from B&Q? It is £34.26! Similarly, a 12ft Trampoline, complete with enclose, is currently priced at £182.81 from B&Q, and £174.99 from Homebase.

And, as we customers keep hoping that a price battle will heat things up, it seems that in a bid to keep cool, the rival firms are matching like with like! For example, B&Q have slashed the price of their Globe Modern Ceiling Fan with Brushed Steel Effect from £103.00 to £67.98. This is seemingly to keep in-line with a similar product from Homebase, as the Monaco 4-Blade Ceiling Fan in Chrome is available for £64.99.

The Home Improvement Centre » diy

DIY Trends Stimulate B&Q Profits

Homebase and B&Q – At War for Your Business!