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Kingfisher shares surge as DIY grips Europe

The home improvements retailer experienced rapid online sales growth in its second quarter
July 22, 2020

Kingfisher (KGF) shares soared by more than a tenth after a second-quarter trading update revealed the benefits of an apparent DIY surge across Europe. Group sales rose by a quarter last month, while e-commerce sales rocketed by 225 per cent.

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The owner of B&Q began reopening stores in the UK and France in mid-April following the coronavirus outbreak, which prompted the closure of all of its French and Spanish stores in March. UK stores capitalised on a surge in DIY activity - between 28 March and 26 April, there was a 147 per cent increase in the time spent doing DIY and gardening to 39 minutes a day, according to the Office for National Statistics. 

France provided Kingfisher’s highest sales growth rate in June, with revenue rising by a third. Growth remains in double digits across Kingfisher’s markets in July, while its sales for the year to 18 July are only down on the prior year by 3.7 per cent, despite its temporary store closures.