Screwfix Rumoured to be Exiting German Market

It has been reported today by a German publication that Kingfisher is to close its 19 Screwfix stores in Germany.

According to diyonline.de, Kingfisher is to close all 19 German Screwfix branches but, as yet, there has been no evidence to support this and no further comment from Kingfisher Head Office or Screwfix.

The general manager of Screwfix Germany, Florian Welz, is understood to be leaving the business to move to Zooplus AG.

In the Kingfisher H1 results announced on 19th September, the company did refer to the loss making Screwfix business in Germany, stating:-

'Other International total sales increased by 4.5% (+0.5 % LFL) to £1,178 million reflecting growth in Poland and the acquisition of Praktiker Romania in November 2017. Retail profit decreased by 19.0% to £64 million, with growth in Poland offset by losses in Russia, Romania and Screwfix Germany. Screwfix Germany sales increased by 19.2% (+19.6% LFL) and made an £8 million retail loss (2017/18: £9 million reported retail loss)'.

A translation of the original diyonline.de article follows:

"According to industry information, Kingfisher closes its 19 German Screwfix branches and is thus for the time being abandoning its growth plans in Germany. In the first half of 2018, the German Screwfix locations had generated around GBP 6 million (at the current exchange rate, this amounts to around EUR 6.75 million).

"Although this was around 20 percent more than in the same period of the previous year, it was obviously still not enough to reach the expansion plans for Germany, which were announced in summer 2014. Back then, more than 600 possible Screwfix sites had been spoken in Germany.

"Florian Welz, General Manager of Screwfix Germany, is switching to Zooplus AG in Munich, according to the same sources. With an annual turnover of EUR 1.111 billion, the company is considered the leading pet retailer in Europe."

The original article can be found here: 
www.diyonline.de/startseite/aktuelles/article/screwfix-verabschiedet-sich-von-deutschland/

We will bring you more information as soon as we hear more.

Source : Insight DIY Team

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