Kingfisher France: Market Challenges Continue

Kingfisher plc has published full year results for the year ended 31 January 2026.

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Kingfisher France

Market - Market declined by c.(3)%, as consumer savings rates continue to be elevated 

Castorama

- Total sales (2.3)% to £2,000m. LFL (2.2)% ahead of the market despite disruption from restructuring the store portfolio. As 10% of the store estate was undergoing transformation, H2 LFL were impacted c.(0.6)% 

- To improve the overall offer 15% of ranges were reviewed with encouraging impact on volume in surfaces & décor, tools and garden. Seasonal performance of (0.9)% was ahead of other categories driven by cooling and outdoor in H1, while big ticket suffered from low demand in the market with LFL (4.5)%

- Trade sales growth was driven by the successful roll-out of the CastoPro trade proposition across the estate in H1, the rapid introduction of dedicated CastoPro zones in 50 stores and the implementation of a trade loyalty programme. Trade penetration reached 9% at the end of FY 25/26. Our in-house CastoRent service is now available across 14 stores, offering low-cost tool rental and increasing exposure to our Erbauer and MacAllister OEB ranges

- E-commerce sales growth was driven by the rapid expansion of Castorama’s marketplace. Castorama onboarded 978 merchants, growing marketplace to 1.6m SKUs and reaching online penetration of 21%. Hello Casto, our AI virtual assistant, continued to enhance customer experience and supported conversion across 1P and 3P.  Hello Casto visits increased +61%, and we have seen customers who click through to a product from the assistant convert at more than twice the Castorama France average. Our in-house AI-powered product recommendations and personalisation now generate c.30% of app revenue. Our data monetisation platform Core IQ was successfully launched and more than 120 1P vendors now use the platform 

- Space contributed (0.1)% to Castorama total sales, reflecting the successful conversion and opening of two franchise stores within the existing estate in June 2025. The three compact stores are trading ahead of the estate average, with an opportunity to expand this concept over time 

- Castorama is making rapid progress in the restructuring and modernisation of its lowest-performing stores. 24 stores (c.25% of estate) have now been addressed under the following initiatives, delivering encouraging early results: 

• Eight rightsized stores: Four completed in FY 25/26 have on average delivered double-digit percentage improvements in sales density on average compared to the Castorama France average. Four are scheduled to complete in FY 26/27 
  
  
• Seven comprehensive refits: Toulon La Seyne and Givors were completed in H1, with resulting LFL sales performance well ahead of the Castorama France average. Five have been completed in Q1 26/27  
  
  
• Five light touch modernisations: The stores completed in the year have delivered improvements in sales density compared with the Castorama France average following their reopening   
  
  
• Two stores, transferred to Brico Dépôt: Montgeron has increased sales by c.10% along with a selling space reduction of 20% following transfer to the Brico Dépôt banner. The second store in Le Havre is expected to reopen in Q2 
  
  
• Franchises: The first two franchise stores opened in June, with first results encouraging. The transition to a franchise model has moved these stores from loss-making positions to a positive profit contribution  
  
  
• Building on this momentum, Castorama has initiated work on a further nine stores  

Brico Dépôt

- Total sales (1.8)% to £1,866m. LFL (2.3)% with improving sequential trends from H1 to H2 and sales performance ahead of the market. Continued strong focus on trade professionals, improved customer offer, enhanced ranges and leading price positioning in key categories

- Core LFL sales improved in H2 (2.2)% vs H1 (5.1)% with building and joinery benefitting from increased investment in commercial campaigns. Big-ticket sales (1.2)% were supported by kitchen range reviews but impacted by market weakness, particularly in H2. Seasonal sales +1.1% had a strong H2, led by heating propellants and garden power tools 

- Trade sales grew +26%, driven by significant development of the trade proposition. Penetration reached 13.1%, up 290bps, supported by Brico Dépôt’s efficient model offering competitive pricing and high in-store availability for time-pressed tradespeople. Brico Dépôt opened two Pro corners during the year, built out its trade focused range and increased investment in dedicated trade sales partners. Trade loyalty membership more than doubled. Brico Dépôt strengthened its price competitiveness with bulk-buy pricing offers, driving volume growth in key products

- E-commerce penetration reached 4.9%, with momentum from upgrades to our web presence  

- Space growth contributed +0.5% driven by the successful opening of the store transferred from Castorama, where sales increased by c.10% along with a selling space reduction of 20%. The second transferred store, in Le Havre, is expected to reopen in Q2 FY 26/27. Brico Dépôt France will also expand its partnership with Mr Bricolage, converting a Mr Bricolage store into a Brico Dépôt franchise in FY 26/27, in addition to the existing OEB supply arrangement. The three 1,000 sqm Brico Dépôt compact stores currently open continue to trade well ahead of the estate average 

France Retail profit

- Gross margin increased +60bps, reflecting the effective management of product costs and supplier negotiations, lower stock provisions driven by better inventory management and lower logistics costs from the reduction of c.10% of distribution centre space 

- Operating costs decreased (0.6)%, with increases in staff pay, social taxes and IT costs offset by savings from structural cost reductions, and the flexing of staff levels and discretionary spend

- Retail profit increased +1.0% to £97m (FY 24/25: £95m, at reported rates). Retail profit margin increased by +10bps to 2.5% (FY 24/25: 2.4%) despite market decline of 3%

- In 2024 we announced a plan to drive the next level of our performance and profitability in France. The plan targets a retail profit margin of c.5%-7% over the medium term, driven by a combination of self-help measures and operating leverage from an improved market environment. We are pleased with the delivery of our self-help measures. The French market has declined by c.10% since 2024, therefore the timing and trajectory of reaching our target is dependent on the pace of the market recovery. 

Source : Kingfisher plc

Image : Kingfisher plc

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