Kingfisher plc has blamed difficult trading conditions for its decision to close 22 B&Q stores.
A further 16 of B&Q’s larger warehouse stores will be converted into a new mini-warehouse format within the wide-ranging store rationalisation programme.
Kingfisher announced the decision after posting a 12.8% drop in group pre-tax profits for the first half of 2005, compared to a year ago. Its profits totalled £250.8m, while sales were £4.07bn.
It said B&Q faced higher energy costs, rising debt burdens and a weak housing market, while the UK repair, maintenance and improvement market declined by 2% in the first half.
B&Q’s sales fell 2.6% (7% on a like-for-like basis) to £2.09bn during the period, recording weak sales of kitchens and flooring.
The store closures will be in areas already well served by other B&Q outlets, while longer-term changes will see larger warehouse stores adapted to offer a broader range of products needed for complete home improvement projects.
Kingfisher chief executive Gerry Murphy said: “While these are the toughest markets Kingfisher has faced in many years, particularly in the UK, B&Q and Castorama France are acting to drive sales and improve cost productivity.”
Kingfisher will take a one-off £200m charge in the second half for its store rationalisation programme and other cost reductions.
