The diy chain Brico dep t will close its 27 stores in Spain and four in Bahis siteleri Portugal, as announced this morning by Véronique Laury, chief executive of the british group Kingfisher, the owner of the teaches. The divestment, according to the executive, is justified in the intention of the company to focus on the markets in which it has or may have a position of leadership. This is not the case in Spain or Portugal, where the company had a turnover in the first nine months of this year to 271 million pounds (€304 million), a 0.9% less than in the same period of the previous year. In Spain, Brico dep t account with 1,700 employees.
Kingfisher has presented on Wednesday its results for the first nine months of the year, in which he has invoiced to the global level 9.128 million pounds (10.232,5 million euros), an increase of 0.8% over the past year, but 1.1% less in comparable terms. Especially, by the malfunction of one of its brands in France, Castorama, falling 6.5% in the first nine months, up to 1.775 million pounds (1.992 million).
With these numbers, Laury has determined that the company, which is in the third year of its five-year plan Kingfisher ONE to improve the accounts, to focus on the countries where you have more business. “We are committed to our plan to build a strong business in the long term. As part of that commitment, we have taken the decision to leave Russia, Spain and Portugal. This will allow us Betexper to implement our strategy with greater focus and efficiency in our core markets, where we have, or can achieve, a leadership position,” said Laury. “We continue to make progress in our transformation,” said Laury, “but a transformation of this size is tough, we operate in a commercial environment difficult”.
The business in Spain and Portugal, just 2.9% of the group total, has declined in the first months of 2018, with sales of 304 million euros, 1.3% less than a year before. However, Brico dep t, has been improving results throughout the year. In the first quarter, the fall in sales was 5.6%, and decreased to 0.3% in the second, accumulating a decline of 2.7% in the first six months. In the third quarter, the results improved 2% year-on-year, although in the accumulated remains negative (-1,3%). According to the company, to give an account of their results, the shops in Spain gave an operating profit of two million pounds in the year 17-18, previous to this, while Portugal recorded a loss of another two million.
Kingfisher is the second group retailer of diy in Europe, behind the French Adeo, owner of Leroy Merlin. The actions have charged in Bag-loose results, with a fall of 6% on the London Stock exchange, accumulating a decline of around 30% so far this year. Your teach main ones are B&Q and Screwfix in the Uk and Castorama and Brico dep t in France and other countries. In fact, Laury has stated that it will focus on lifting the performance of Castorama in France, warning that “it will not be a quick fix”.
