As Kingfisher opens its 1,000th store worldwide, Retail Week takes a look at its international growth strategy.
How big is Kingfisher’s overseas business?
The DIY group is one of the UK’s most international retailers. In 2011/12 60% of its £10.8bn turnover came from overseas.
How has it expanded?
Acquisition has been a key plank of Kingfisher’s international expansion. It began in 1998 when it merged with French giant Castorama, which it took full control of in 2003, to form Europe’s largest DIY chain. It also bought Obi China’s stores in 2005.
The retailer operates a multi-brand approach with B&Q and trade fascia Screwfix operating in the UK and China, while the Castorama and trade specialist Brico Depot fascias have been rolled out across mainland Europe.
It has ramped up its expansion recently increasing its worldwide portfolio by 50% in the last six years.
Where does the retailer have stores?
Kingfisher has stores in eight countries across Europe and Asia. It has 360 B&Q stores and 240 Screwfix fascias in the UK and B&Q is expanding in Ireland.
Castorama has 100 stores in France, 67 stores in Poland, 19 stores in Russia and Brico Depot has 100 shops in France and 20 stores in Spain.
It also has a presence in China, with 40 B&Q stores, and in Turkey through the Koctas joint venture which has 37 stores.
Kingfisher also has a 21% stake in German DIY chain Hornbach which has 130 stores across eight markets.
What’s next for Kingfisher overseas?
The retailer is to roll out stores across Eastern Europe and wants to add 100 stores in Turkey which group chief executive Ian Cheshire said was one of its big growth opportunities. It has also earmarked more stores in both Poland and Russia.
Kingfisher’s ‘Creating the Leader’ plan, which it launched in May, includes “expanding in new and developing markets”. It said it will “research a new territory entry” as well as test a ‘Do it for me’ format in China.