As Kingfisher boss Sir Ian Cheshire prepares to step down after seven years as group chief executive, Retail Week looks at his legacy.

The financials

During Cheshire’s tenure Kingfisher’s adjusted profit before tax doubled as sales grew by 23% and its market capitalisation soared by 112% to £3.8bn. Debt totalling £1.6bn was eliminated, which allowed the retailer to make its first capital return programme to shareholders. Cheshire’s main priority when taking the helm was to deliver value to shareholders, and most would agree he achieved that.

International expansion

Kingfisher has expanded significantly during Cheshire’s reign, most recently evidenced by Screwfix’s launch in Germany at the end of last month and expansion into Romania and Portugal. Kingfisher is in the process of acquiring French retailer Mr Bricolage, which will give it a dominant position in the French market when complete. The international push under Cheshire’s stewardship has produced a stronger company, able to boost profits from growing markets even when its domestic market is depressed – something that none of its UK rivals can boast. It has not all been rosy though. The retailer’s Chinese business continues to struggle and Kingfisher is seeking a partner in the country as it seeks to emulate its Turkey joint venture model.

Group synergies and product innovation

Cheshire has been praised for integrating a group of disparate overseas DIY businesses under the Kingfisher umbrella, to give Europe’s largest DIY retailer a more cohesive strategy. Initiatives have included ramping up group sourcing and rolling out common products across the group, part of his Creating the Leader strategy. And in a market that often lacks product innovation from the big brands, Cheshire’s view is that Kingfisher must lead the charge. He has set up an innovation centre and last year Kingfisher held its first product innovation show, located, tellingly, in France.

Multichannel expansion

The DIY sector has traditionally been behind the curve when it comes to ecommerce, and B&Q is no different. However, Cheshire astutely realised early on the power of its Screwfix business, which is dubbed ‘the Argos of DIY’ and is now the darling of the Kingfisher business. Tradesmen and DIY enthusiasts alike rave about it and it leads the way in digital innovation in the sector. That is reflected in its growth, which has outpaced B&Q for some time now. B&Q UK & Ireland’s like-for-likes were up 3.2% in the first half, compared with 11.9% at Screwfix.

Sustainability

Cheshire has campaigned hard on sustainability during his years at the retailer. The flagship initiative has been the Net Positive programme designed to make a positive impact on energy, innovation, timber and communities through adapting the supply chain and retailing operations. Cheshire sought to lead by example with the scheme and called for other large companies to do more to restore faith in business’s contribution to society. The launch of Net Positive followed B&Q UK becoming the first retailer to buy 100% responsibly sourced wood in 2011. This year Cheshire was knighted in the New Year Honours list for services to business, sustainability, and the environment.

Public profile and retail advocate

Cheshire has built a strong media profile while at Kingfisher, happily commenting on controversial and important political issues including Scottish independence, sanctions on Russia and business rates. He is also chairman of British Retail Consortium and is a non-executive director at the Department for Work and Pensions, alhtough he is expected to relinquish those roles in the coming months.  It is not known what Cheshire intends to do next, but politics could be an option.

 

The man who knocked Kingfisher into shape

Often described as one of the smartest and personable of business leaders, Cheshire joined Kingfisher in 1998 and joined the board in June 2000. He has held several senior roles including director of strategy and development, chief executive of e-Kingfisher, chief executive international and development and chief executive of B&Q UK & Ireland.

He was made group chief executive in January 2008.

In 2012 he won Clarity Search Retail Leader of the Year at the Oracle Retail Week Awards, and received the Order of State, granted by the French President, for his “significant contribution to the strengthening of economic and commercial links between France and the UK”.

Before Kingfisher, Cheshire worked at Guinness and Sears. He was also formerly a consultant at Boston Consulting Group and worked at private equity firm Piper. He studied at Cambridge.

Interview: Kingfisher boss Sir Ian Cheshire on his legacy as he leaves the stage