B&Q yesterday threw down the gauntlet to Curry’s, Comet and MFI with an aggressive campaign to more than double sales of electrical goods.
The change in strategy comes after the demerger of Kesa, the owner of Comet, from the Kingfisher group last year. Kingfisher owns B&Q.
Next month B&Q will expand its range of cookers, fridges, microwaves and washing machines from 80 models to 500. It will also add more up-market brands such as Bosch and AEG alongside its existing range, which includes Whirlpool and Hotpoint.
David Roth, B&Q’s marketing director, said that the company wanted to increase sales of appliances from £60 million to as much as £150 million within three years.
This would give the retailer 3.5 per cent of the UK household appliances market.
Mr Roth said: “We want to increase the number of people who buy appliances alongside their kitchen. We are not going to aggressively play in the distress-replacement market.”
He said that over time it could be possible for B&Q to achieve the same share of the market as its US counterparts, Lowe’s and Home Depot.
Analysts said MFI, the Dixons group and Curry’s would all face increasing competitive pressure from DIY retailers.
Phil Mitchell at JP Morgan said: “The US has seen an explosion in sales of appliances via home improvement centres over the past five years as Lowe’s and then Home Depot realised the potential.”
The bank said that home improvement stores had trebled their market share to 30 per cent in five years and forced Circuit City, a leading electrical specialist, to retreat from the home appliance market.
B&Q’s expansion into home appliances is part of a move to increase the items it sells, particulary in higher priced areas such as soft furnishings, beds and bedroom cabinets. It is using home delivery and catalogues to put a wider range on offer and so encourage its customers to spend more.
From the Business Times