B&Q owner endures tough autumn

Retail group Kingfisher today said profits at its flagship B&Q chain halved this autumn after it was forced to slash prices to shift surplus stock.

Kingfisher warned that its margins would keep falling if there were no improvement in the current market, with rising costs compounding fewer shoppers visiting its stores.

Like-for-like sales fell 8.4% at B&Q during the 13 weeks to October 29 and forced Kingfisher to offer more discount deals, particularly on “big ticket” items such as kitchens.

This was reflected in pre-tax profits of £50.3m (€73.4m) during the period compared with £106.7m (€155.7m) at B&Q where costs are likely to be 4% higher this year than in 2004.

Chief executive Gerry Murphy said: “The UK retail environment continues to weaken, significantly impacting B&Q’s sales and profits.”

Kingfisher employs about 700 people in its B&Q home improvement stores in Ireland.