Kingfisher's plans are big - in fact they will bring a £500 million sustainable annual profit uplift, according to Véronique Laury, Kingfisher’s CEO (pictured above).
The recently announced plan revolves around turning Kingfisher with its brands B&Q, Screwfix, Castorama, Brico Depot and Koctas – some 1,200 stores in 10 European countries – into “a single, unified company where the customer’s needs always come first”.
This is called the ONE Plan. It’s going to cost £800 million over the 5-year strategic period and is designed to create “a unified, unique and leading home improvement offer, driving our digital capability and optimising our operational efficiency”.
The plan does not include wholesale network expansion, by the way, which will be deliberately limited in the medium term to taking the highly successful Screwfix model outside of the UK for the first time.
Instead, the ONE plan involves spending £480 million on a new offering to generate a £350 million sustainable annual profit uplift, finding a £50 million annual profit increase from digital (e-commerce platforms etc) at a cost of £210 million and generating £100 million of profit annually from “operational efficiencies” at a cost of £110 million.
Some of these operational efficiencies include possibly the biggest task – unifying as many of the products sold across its store networks as possible.
With Bunnings now definitely on the way through its Homebase purchase, it’s all change for the UK and Europe DIY and home improvement channel.