Report comment

should Kingfisher be worried? in the long term I don't think so. Kingfisher is a mature player that has seen off pretty much every big box DIY player and is top of mind with the buying public with the clout to chase prices if it has to.

Bunnings will find it more than difficult to secure premium brands as B&Q place an arm lock on its existing brands so choice will not be a differential for them and neither will price so that leaves service which I can see them winning although again only in the short term.

without doubt however they will initially effect the sales of each B&Q where they have a presence and it will be interesting to see the reaction of B&Q when that happens.

one area that they could take significant share is in the trade supplies market where B&Q are not close enough to the many tradesmen who don't have a significant choice. they do now and Bunnings are good at it.

entering the UK market, which is arguably the most sophisticated retail market in the world where the UK has been practising organised retail for hundreds of years resulting in more retail space per capita than almost anywhere else in the world will not be easy.

There success will depend on them being able to craft a position in the market with a real competitor differential. given the Australian attitude that Australian is best they have already shot themselves in the foot by bringing in an Australian MD. they have deep pockets and will need them.