B&Q and Screwfix Owner Optimistic About Sales Outlook as Property Market Revives
The UK’s business climate appears to be brightening, with news from Kingfisher plc—owner of household brands like B&Q and Screwfix—indicating positive trends as the property market shows signs of recovery.
Kingfisher’s shares jumped by 7% following the company’s latest half-year results, which exceeded expectations. For the six months ending July 31, underlying pre-tax profits dipped slightly by 0.5% to £334 million; this drop was softened by a welcome £25 million rebate on business rates for B&Q.
Despite some challenges, including cooler temperatures impacting outdoor sales during the spring, the company has observed encouraging sales trends since July. Like-for-like sales comprising both B&Q and Screwfix were reported to be down just 0.2%, which is seen as improvement compared to the previous quarter’s performance. The report also indicated significant declines for larger ticket items, such as kitchen and bathroom products, which faced drops of 11.6% and 7.2% respectively.
Kingfisher’s chief executive, Thierry Garnier, expressed optimism about these early signs of recovery. He emphasized maintaining cost and inventory controls during these uncertain times. “Demand for big ticket categories remains weak, mirroring the market,” Garnier stated, but noted the uptick in seasonal sales, particularly relevant to outdoor furniture and grills.
The adjusted profit guidance for the year now sits between £510 million and £550 million, higher than the previously projected range. This change reflects the improving trading scenarios across the UK, Ireland, and France—highlighted by softening previous year comparisons.
Meanwhile, the push for home improvement reflects broader trends affecting the property market. Analysts suggest greater clarity on housing market conditions will continue to incentivize new home projects and renovations, fostering demand for home goods and services.
Also paving the way for growth is the sector of women-led businesses, which has seen formidable advancements. Investment rates for women-powered firms have tripled over the past decade, with Starling Bank and Beauty Pie leading as exemplary examples of success.
JP Morgan Private Bank’s report reveals Starling Bank, founded by Anne Boden, saw its sales double last year as it expanded operations. Similarly, Beauty Pie, established by Marcia Kilgore, attracted over £126 million in equity investments since its inception. These enterprises are beneficially positioned to leverage the growing consumer focus on female empowerment.
Further insights highlight how more women are taking the helm across various business sectors, with nearly 30% of businesses falling under the women-led category as of this year—up significantly from about 18% several years back. This surge not only indicates progress for gender parity but also reinforces the potential for innovative approaches often introduced by women entrepreneurs.
The rise of digital technology firms has also contributed significantly to the investment picture, particularly companies building their businesses around innovative models such as AI and data analytics. Female-led firms are increasingly capturing the attention of investors interested not just in profitability, but also in the social impact these businesses can generate.
Grace Beverley, founder of two successful fitness brands—Tala and Shreddy—echoes the growing need for networks supporting female founders, stating, “We need more systems to support women and improve access to the capital they require.” Meanwhile, Susie Ma from Tropic Skincare emphasized the necessity for more female figures at the investment table to nurture the eco-system for aspiring businesswomen.
Overall, the convergence of recovery signs within existing businesses alongside the rapid rise of women-led ventures indicates promising growth trajectories for the UK economy. If continued, this pattern could pave the path to revitalized consumer confidence, meaning more investment could flow through as shopping patterns shift positively.
Looking now at the overall industry response, the housing market and the embedded rise of women-led enterprises serve as integral parts of the UK’s outlook. With the UK economy predicted to bounce back, and businesses refining their strategies and offerings, the sentiment reflects newfound hope.
