Coronavirus lockdown: Kingfisher sales plunge due to store closures
B&Q owner Kingfisher reported plummeting sales in the first quarter due to coronavirus lockdown measures, but said trading was beginning to bounce back after stores reopened.
The DIY retailer said first quarter like-for-like sales were down 24.8 per cent to £2.2bn due to the impact of coronavirus.
Online growth increased fourfold from mid-March as Kingfisher closed its stores across the UK and France to comply with coronavirus lockdowns. E-commerce sales soared by 251.7 per cent in April.
The company reported that sales were improving due to the phased reopening of branches in the second half of April. Group like for like sales were up 2.7 per cent in the first week of May compared to a decline of 74 per cent in the first week of April.
Kingfisher has confirmed its eligibility for the Bank of England’s Covid Corporate Financing Facility and has also confirmed a £525m facility, guaranteed by the French state and arranged with three French banks.
It has also agreed an additional revolving credit facility of £250m. The company has a current cash balance of £700m and access to more than £2bn in total liquidity.
Chief executive Thierry Garnier said: “Since the Covid-19 crisis started, our priorities have been clear – to provide support to the communities we serve, to fulfil our obligations to colleagues as a responsible employer, to our customers as a retailer of essential goods, and to protect our business for the long term.
“Having initially closed our stores in France and the UK, we have rapidly adapted how we operate to meet the essential needs of our customers safely during lockdown.
“We started by transforming our operations to meet a material increase in online transactions through our click & collect and home delivery services.
“We reconfigured our retail space and processes, allowing a phased and safe reopening of stores whilst preserving the social distancing and other health & safety protocols that are likely to be with us for some time. In addition, we have donated over £1m of PPE to frontline health workers, with more on the way.”