B&Q cuts staff amid sales fears

Teena Lyons|Mail13 April 2012

KINGFISHER has scrapped 70 head office jobs in buying and marketing at its B&Q chain amid fears the DIY giant has suffered a sudden slowdown in sales.

According to sources inside the company, staff have been warned of further cuts at B&Q's Southampton headquarters where 1,400 people work. Some stores may also be hit.

Officially, the job losses are simply part of a 'streamlining process'. But the company would not comment on the sales performance ahead of third-quarter results next week.

B&Q accounts for £1 out of every £4 spent on DIY and gardening goods - more than its two main rivals, Focus and Homebase, combined. Last year, full-year profits at B&Q rose by 12.8% to £373 million.

News of a possible slowdown comes on top of the continuing troubles at the group's £200 million Screwfix Direct business. The retailer has been forced to set a limit on customers because of staffing difficulties at its new warehouse in Stoke-on-Trent.

Order lines, which are used mainly by trade and professional builders who need equipment at short notice, are now closing as early as 11am every day as the service reaches capacity.

Kingfisher says that it is working hard to resolve the situation but admits that it will probably not improve until Christmas.

Earlier this year, Kingfisher brushed aside rumours of a slowdown in the DIY market by reporting a 2.5% rise in sales at B&Q.

But in September, the home improvement giant said poor weather during the summer had dampened sales of seasonal goods such as garden furniture, though demand for kitchen and bathrooms was growing.

Last week, Kingfisher was linked to the speculation surrounding MFI Furniture with suggestions that the company was interested in making a play for MFI‘s Howdens joinery business.

A dire profit warning in September has left MFI vulnerable, though the company has privately poured cold water on the prospect of an imminent bid - particularly with an announcement on strategy expected this month.

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