B&Q Birmingham store to close as retailer axes 60 outlets

A B&Q store in Stechford, Birmingham, is among the first confirmed casualties of parent group Kingfisher’s plans to shut 60 stores nationwide.

Kingfisher has started a major restructure that includes having fewer stores in response to falling sales and profits.

Pre-tax profits were down 7.5% in the year to January 2015, with sales falling 1.4% to £10.9bn.

The company has previously acknowledged that it believes it can meet customer needs from fewer stores and that some of the stores should be smaller.

It has announced plans to close 15% of its B&Q space, which is about 60 stores, over the next two years. The closures will create an exceptional charge of £350m, mostly because of lease provisions over the next two years.

The plans were given a warm welcome by the City, with Kingfisher’s share price up nearly 5% by mid-morning.

Véronique Laury, who was appointed Kingfisher’s chief executive in December, said: “We have a lot to do and we are announcing today a set of first ‘sharp’ decisions which are already underway including the closure of around 15% surplus B&Q space (c.60 stores) and our few loss making stores in Europe, the development of unified garden and bathroom businesses and the start of a Big Box revitalisation programme across Europe.”

The Birmingham B&Q store is among the first batch to be named, along with stores in Barnsley, Southampton, Dundee, Mansfield and Hyde.