DIY firms Homebase and B&Q suffer sales slump


B&Q storeImage copyright
PA

The UK’s two biggest DIY chains, B&Q and Homebase, have both reported a slide in sales this summer.

B&Q said sales at its established stores fell 5% in the three months to July amid a drop in demand for garden furniture and other summer products.

The fall dragged shares in B&Q owner Kingfisher down 4.1%, making it the biggest faller on the FTSE 100.

Meanwhile, Homebase reported a similar drop in quarterly sales under its new Australian owner.

George Salmon, an analyst at Hargreaves Lansdown, said: “It looks like Kingfisher isn’t alone in having difficulties in the UK.

“The group’s flagship B&Q chain saw like-for-like sales fall 4.7%, which is similar to the 4.3% fall at Bunnings UK, the new owner of Homebase.”

As well as the Bunnings DIY chain, Wesfarmers also runs the supermarket chain Coles and the Kmart and Target chains in Australia.

Image copyright
Bunnings

Sales of summer products dropped nearly 11% at B&Q, partly because customers bought more of those items during the warm spring.

Kingfisher said it remained cautious about the economic outlook for the UK in the second half of the year.

However, its other DIY chain, Screwfix, continued its stellar run, with sales at existing stores rising 10% in the period.

‘Long slog’

Homebase’s results were partly dragged down by its transition under its Australian owner.

Bunnings UK, which bought Homebase for £340m last year, is changing the DIY retailer’s discounts and rebranding more stores under the Bunnings name.

In the first financial year since acquiring the chain, Bunnings UK booked a £54m loss on revenue of £1.2bn.

Bunnings Group managing director Michael Schneider told analysts it was braced for a “long slog” in the UK.

“The opportunity for the Homebase stores is going to be more clarity and consistency in execution,” he said. “There’s no silver bullet.”



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