Kingfisher in management shake-up
Sales overcome summer blip at DIY giant
November 11 2003
Kingfisher has announced a senior management reshuffle as Bill Whiting, boss of the core B&Q DIY chain steps down to a part time role.
The company has also reported strong sales, up 9.2 per cent in constant currencies, across the third quarter as the business recovered from a sales slowdown while Europe sweltered in the summer heatwave.
Bill Whiting will step down as chief executive of B&Q at the end of the current financial year on January 31. He will take up a part-time executive role working on the development of the Group’s major brands which include B&Q and Castorama, reporting to group chief executive Gerry Murphy.
Whiting, who will stay on the Kingfisher board until 2005, will be succeeded as chief executive of B&Q by Rob Cissell, currently B&Q’s managing director – commercial. Cissell has been with Kingfisher for nine years, and was managing director of Comet until the start of this year, staying with Kingfisher when the Kesa electricals business was demerged.
Kingfisher chairman Sir Francis Mackay said: “Bill Whiting has made an enormous contribution to the Group over the last 21 years helping build B&Q from a small DIY chain to the UK’s number one.
“He was a key architect of the successful Warehouse format and has exported the B&Q brand successfully to Asia. I am delighted that Bill will be staying on the board and that he is being succeeded at B&Q by such a capable leader as Rob.”
In addition, Kingfisher group finance director Helen Weir is leaving the business “to seek a more operational management role.” Weir will step down from the board at the end of the financial year and will remain with the group until the end of March.
Duncan Tatton-Brown, currently finance firector of B&Q, will join the board in February as group finance director, while George Adams, currently group commercial director takes up the new post of chief executive, commercial, “in recognition of the importance of group-level product sourcing, range optimisation and pricing strategy.”
Sir Francis said: “I understand but am saddened by Helen Weir’s decision to leave the group. she has been a highly effective finance director and board member and has made a great contribution, both in her time at B&Q and, particularly, over the last three years during the re-structuring of Kingfisher.
“I thank Helen on behalf of the Board and wish her well. Duncan has proved himself an outstanding finance director at B&Q and I look forward to his joining the board. ‘It is a sign of the depth of talent in Kingfisher that we can fill these key positions from within the business.”
On sales, Kingfisher said the third quarter was adversely affected by the prolonged heatwave across Western Europe. Total sales for the continuing businesses grew by 13.3 per cent in the 13 weeks to November 1, or 9.2 per cent in constant currencies and 3.6 per cent on a like-for-like basis. Like-for-like sales growth improved in October.
In the UK, total sales grew by 8.2 per cent, and 2.7 per cent on a like-for-like basis. One new Warehouse store and two new mini Warehouses were opened and eight Supercentres converted to the mini Warehouse format.
In France, total sales grew 18.8 per cent, or 7.5 per cent on a constant currency basis. Like for like sales were up 4 per cent. Three relocated new format Castorama stores opened in the period, and “are proving popular with customers and are trading ahead of expectations.”
Kingfisher’s international operations in Poland, Italy and China grew sales by 28.5 per cent across the quarter, with like-for-like sales were ahead 7.8 per cent.
Chief executive Gerry Murphy said: “For the most part, we were able to mitigate the profit impact of the sales slowdown early in the quarter. The board continues to expect satisfactory progress for the year as a whole.”
