Creation of 1200 UK jobs

RNS Number : 2692O

Kingfisher PLC

15 September 2011

 



Thursday 15 September 2011

Kingfisher to create over 1,200 jobs across the UK through store expansion

Kingfisher, Europe's leading home improvement retailer, announces that it is to create over 1,200 new jobs across the UK this year as it expands its B&Q and Screwfix operations. The expansion plans will bring Kingfisher's total investment in the UK this year to £130 million, with a combined total of over 80 new Screwfix and B&Q stores being opened during 2011.

B&Q

§ 230 extra jobs created at the 29 former Focus stores acquired earlier this year, in addition to 570 jobs saved at the time of the purchase.

§ Stores will be opened under the B&Q fascia, with the first five already trading.

Screwfix

§ 1,000 new jobs to be created at Screwfix, the UK's largest multi-channel supplier of trade tools, plumbing and electrical equipment, as its opening programme is accelerated.

o 40 new stores opened by the end of January 2012, in addition to the 13 already opened this year.

o Accelerated opening programme will create 600 new jobs, in addition to the 400 new jobs already planned.

o Move follows a successful trial of a new format store (400 square metres compared with the more typical 700 square metres) designed for smaller, more densely populated urban areas.

§ As at the end of January 2012, the total number of Screwfix outlets will be 215, just six years after the concept was launched.

UK Investment

§ Expansion will bring Kingfisher's total investment in the UK this year to £130 million, nearly four times the level of the previous year (£34 million).

o Kingfisher paid £24 million for the 29 ex-Focus DIY stores, and will spend an additional £20m refurbishing them before they re-open as B&Q stores.

o A further £64 million has been invested in acquiring the freehold interest of existing UK properties.

Ian Cheshire, Kingfisher's Group Chief Executive, said: "We are backing Britain, investing to grow our B&Q and Screwfix businesses in the UK, creating jobs and supporting local communities. We have the balance sheet strength and financial flexibility to do this. Although the economic outlook is uncertain, this investment demonstrates our confidence in the UK's longer-term growth prospects."

Euan Sutherland, Chief Executive of Kingfisher UK & Ireland, said: "We are delighted to be bringing B&Q's choice, convenience and value to areas where B&Q has not been represented and adding extra jobs to the roles already safeguarded. At Screwfix, we have been trialling a smaller store format for some time and it has proved very popular with customers. The new format opens up a lot of new locations that would not otherwise have been possible. It gives us scope to expand the Screwfix network to over 300."

The expansion programme will be nationwide and supported by Screwfix's headquarters in Yeovil, Somerset, where the company employs 750 staff.

Kingfisher is also expanding internationally. Earlier this week it announced plans to invest £115 million opening nine new Castorama stores in Russia over the next two years.

Enquiries:

Ian Harding, Group Communications Director	020 7644 1029
Sarah Gerrand, Head of Investor Relations	020 7644 1032
Nigel Cope, Head of Media Relations	020 7644 1030
Clare Haines, Media Relations Officer	020 7644 1286
Brunswick	020 7404 5959

Notes to Editors

Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with 875 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 50% joint venture business in Turkey with Koç Group, and a 21% interest in, and strategic alliance with Hornbach, Germany's leading large format DIY retailer.

B&Q is the largest home improvement and garden centre retailer in the UK and Ireland with 335 stores, employing more than 30,000 people nationwide, more than a quarter of whom are over 50 years of age, with a similar number under the age of 25. For more information about B&Q please go to www.diy.com/aboutus.

Screwfix is the UK's leading cross-channel supplier of thousands of high quality screws, fixings, hand tools, power tools, plumbing and electrical supplies. Combining trade prices and a huge range of leading brand name items, the unrivalled Screwfix catalogue offers over 18,000 products available for next day delivery or same day collection at over 175 Trade Counters nationwide. Order over the phone, online or via mobile app before 6pm for next day delivery or collect within 15 minutes at any trade counter.

As part of Kingfisher's interim results reported today (Thursday) Screwfix recorded a 25% increase in profits to £17m for the six months to 30 July. In the previous full year, profits were £28m on sales of £479m.

 

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