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Kingfisher 'will win' as rivals go under
27.11.08
B&Q owner Kingfisher insists it will emerge from the retail carnage as a stronger company.
Chief executive Ian Cheshire says the DIY chain is picking up market share as weaker rivals buckle and go out of business.
The collapse of MFI removes one competitor, and others may follow.
"We will be one of the winners from the cycle. We are investing for the long term and we have a great set of brands," Cheshire said. He reassured staff not to fear large-scale redundancies.
Kingfisher is also aided by an international presence, which means it is not reliant on Britain.
In the 13 weeks to November 1, like-for-like sales fell 9% in the UK but only 1% in France. It made a £176 million profit in the third quarter - down 4% - of which £36 million was made in the UK.
Cheshire took the top job earlier this year, promising a "step change" in shareholder value. He insisted the "three or four-year" journey to change the company was still on track.
To cut costs it is ditching its Trade Depot format, a range aimed at the wholesale market rather than the home decorator.
Across the group sales slipped 5% to £2.55 billion.
Kingfisher warned that market conditions in China "continued to deteriorate", with demand for Kingfisher goods falling.
