Kingfisher / B&Q feeling the pinch?...

:::Jerry:::: · 2005-09-15T08:54:33+00:00

Seems like B&Q are feeling the effects of the down turn in theconsumer sector, 400 'office' jobs cut last week and now 22 stores toshut and some B&Q Warehouses to be down graded to Mini Warehouses andfloor space to be 'marketed' to other retailers - didn't Home Base godown that road? Ho, hum, how long before the Home Depot rumours startagain... (whatch any line wrapping) B&Q will close 22 stores in markets already well served byother B&Q stores. Around 16 of B&Q's larger Warehouse stores will beconverted to the new mini-Warehouse format, releasing space whichwill be marketed to other retailers. This will represent a reductionof around 7% of total selling space. With B&Q stores alreadyaccessible to most of the UK population and property costs inflatingsignificantly, future store development will focus principally onrevamping existing stores and opening new lower cost, higher returnmini-Warehouses. The new management expects to be able to transfermost of the staff affected to other stores.

Sep 15, 2005 43 Replies

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Bob Mannix 20 years ago

Unfortunately not true. The stores exist to satisfy shareholders (as with all businesses). The more customers and profit, the more shareholder satisfaction so they will work on that. If they could produce the results with less customer satisfaction they would (as you have seen) -drop service until they squeak then crank it up a bit. Look at the piles of crap left in the aisles of Tesco 24hr stores late at night because they have to stock shelves when customers are there - doesn't make me satisfied but they are open and I'm still there (occasionally)!

I'm not particularly a Tesco basher (otherwise I wouldn't shop there) but the most malign influence of global food retailers is their effect on the supply side - customers get an advantageous deal overall - the suppliers pay the price.

Bob Mannix.

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Brian Sharrock 20 years ago

I'll repeat; no customers ... no stores -> shareholders lose all their 'investment' -> Directors/Managers/Staff lose their jobs/bonus et.al.

That sound like a feedback mechanism to ensure the 'management' react (quite quickly) to customers' demand.

I read the words ; in fact I understand what they mean individually ... but I can't quite grasp what point you're trying to make.

You don't have to shop there - unlike when I was growing up, and my mother was required to _register_ at a food store to obtain 'the rations' - you can purchase food from other (bijou) retailers

-OR- purchase Fair-Trade goods from ... ta,ra ... Tesco.

Do you _always_ choose to purchase the Fair-Trade coffee/tea/sugar/ bananas et.al. ....?

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Bob Mannix 20 years ago

I'll repeat: they are there to satisfy shareholders - that doesn't make what you said about "no customers no stores" untrue.

There's a deal of difference between "unsatisfied" and "complaining" or shopping elsewhere. If they were wholly concerned about customer satisfaction they would be trying to ensure this anyway, without waiting for complaints, was the point I was trying to make (admittedly I could have just said that ;o) ).

No I don't, but I was talking about cutomers in general, some of whom shop at Tesco because it's cheaper (in some areas). The influence of the large chains on the supply side would be unaffected by the presence or lack of my custom. Tesco have a huge market share and use it.

Not pertinent to the argument as I was talking about the general customer but FWIW: coffee - yes, tea - no, sugar - hardly ever buy any, bananas: usually> --

Bob

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