The first store, under the working name Trade Depot, will open in Southampton on the site of the former B&Q store at Millbrook. A second outlet is slated for early next year.
A spokesman said the new chain would be 'filling the gap between the likes of Travis Perkins and Jewson on one side, and Howden and Topps Tiles on the other.'
He said that after studying the market, Kingfisher has upped its previous rough estimates of the size of the highly fragmented trade sector from£15 billion to£50 billion, when aspects such as landscape gardening and tool hire are included.
The stores will be between 20,000 sq ft and 35,000 sq ft (1,860 sq m and 3,250 sq m) and will be located on industrial estates rather than retail parks. The project is being managed by Kingfisher chief executive of UK trade George Adams, as a separate vehicle to the core B&Q chain. Adams also holds responsibility for Screwfix Direct and the recently launched Screwfix trade outlets.
More information on Trade Depot will be revealed on September 15 at Kingfisher's interim results. An update on B&Q, headed by recently appointed B&Q chief executive Ian Cheshire, is also expected at that time.
Goldman Sachs said in a note that B&Q plans to gradually increase 'soft' DIY from about 15 per cent to 30 per cent of sales, trade from 8 per cent to 15 per cent and reduce core DIY to 55 per cent of the mix.
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