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Kingfisher: Update On 'Powered By Kingfisher' Strategic Plan

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In June 2020, along with its FY 19/20 results, Kingfisher announced its new strategic plan – ‘Powered by Kingfisher’. Under this plan we aim to maximise the benefits of our distinct retail banners (which address diverse customer needs) with the ‘power’ of the Kingfisher Group, thereby addressing the significant growth opportunities that exist within the home improvement market. To serve customers effectively today, we need to be more digital and service orientated, while leveraging our strong store assets.

Our conviction is that each of our retail banners addresses the often different needs of  customers. Each banner has a differentiated positioning and business model, and by respecting these differences we will maximise their potential. Each banner needs the right product range, its own commercial approach, and services that meet its customers’ needs. The development of banner-specific plans is ongoing, including a strong focus on ensuring we maximise the growth opportunity at Screwfix and re-establish a strong customer proposition in Castorama France. 

Kingfisher’s scale, used intelligently, is an important source of competitive advantage. Kingfisher has well-established Group capabilities in own exclusive brand (OEB) development, buying and sourcing, technology, and shared services. However, Kingfisher’s rganisation is still too complex and needs to be simpler, leaner, more agile, open to partnerships, and even more customer-focused. We will continue to adapt the operating model so that Group functions are set up efficiently to ‘power’ growth in our retail banners, providing:

• Differentiated own exclusive brands (OEB), which are innovative and provide a key source of differentiation

• Sourcing & buying, delivering lower cost prices

• Technology & partnerships, providing all our banners with access to the best technologies and complementary partnerships

• Shared services and lower cost functions

• Centres of excellence, to set strategy and targets, to share knowledge and best practices, to support implementation, and to help steer progress. Centres of excellence include e-commerce, digital journey, data, store concepts, services and service platforms, and supply chain 

• Culture & values, providing a framework for our core behaviours, values, and industry-leading responsible business practices

Our priorities under ‘Powered by Kingfisher’

The business identified a number of immediate priorities (‘Focus and fix’ in 2020) for the Group as well as a series of medium term priorities (‘Simplify and grow’ – numbers 2 to 8 below), centred around empowering our distinct retail banners and simplifying Kingfisher’s operating model, embracing digital and own exclusive brands, and returning the business to growth. 

In early 2020, the outbreak of COVID-19 rapidly became the most critical issue facing our business. Managing its impact has therefore been, and remains, a top priority. 

1) ‘Focus and fix’ in 2020 (including managing the impact of COVID-19 on the business) 

2) Move to a balanced, simpler local-group operating model with an agile culture 

3) Grow e-commerce sales 

4) Build a mobile-first, service orientated customer experience

5) Differentiate and grow through own exclusive brands (OEB) 

6) Test compact store concepts and adapt our store footprint 

7) Source and buy better, reduce our costs and our inventory

8) Lead the industry in Responsible Business practices 

Learn more about the specific plans for each of these priorities on page 4 through 12 in the full half-year report, available here.

Half-Year Results: See Kingfisher's half-year performance summary here

UK & Ireland: View Kingfisher's UK & Ireland performance here 

Source : Kingfisher PLC

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22 September 2020

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