Castorama And Bricot Depot Post LFL Sales Decline

Yesterday, Kingfisher published its unaudited Q1 24/25 trading update, advising of sales of £3.3bn with total sales +0.3% (constant currency) and -0.3% (reported).  Group like-for-like sales were -0.9% including a +1.9% calendar impact (of which +1.1% relates to the leap year). 

Click here to view a summary of the Group results

Click here to view UK & Ireland results

FRANCE

Total sales -5.1% (LFL -5.3%), with trading, as expected, impacted by ongoing weakness in the broader market. Both banners performed broadly in line with the French home improvement market, based on external panel data and Kingfisher analysis. 

With the structural simplification of the French organisation now complete, the businesses are focused on improving their respective performance in line with the plan outlined in our FY 23/24 results in March. Castorama’s store restructuring and modernisation plan for its lowest performing stores, also outlined in our FY 23/24 results, has started well. The business has completed two right sizings in the year to date, with one further rightsizing due to complete in H2. All three rightsized stores will, at the same time, benefit from a pervasive store refit along with one additional low-performing store. The refits will be similar to the concept successfully applied to the Castorama Englos store last year. The transfer to Brico Dépôt of one low-performing Castorama store is in motion, and we are making good progress towards our goal to start tests for two franchise stores within the next 12 months.  

• Castorama sales -5.5%. LFL -5.5%, with market weakness reflected broadly across all categories, in particular ‘big-ticket’ category sales. Early results of Castorama’s e-commerce marketplace, launched in March, have been encouraging with the business focused on scaling up the proposition. Castorama also continues to trial its trade loyalty programme, with further roll-out to additional stores planned in Q2.
  
  
• Brico Dépôt sales -4.7%. LFL -5.2%, with its category performance broadly in line with Castorama and the wider market. Brico Dépôt opened one compact store in May, with three of these innovative 1,000 sqm format stores now open. The business continues to focus on capturing more of the trade opportunity, with positive results and customer engagement seen following the nationwide roll-out of its trade loyalty programme in February.

Source : Insight DIY and Kingfisher plc

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