DIY Sales Surge During Lockdown
- Kingfisher sells Castorama Russia to Maxidom for £73m
- Deal completed on 30 September with 80% paid upfront, remaining 20% in two years
- CEO Thierry Garnier thanks Castorama Russia colleagues
- Sales down 1.1% to £5.9bn in first half of the year
- Pre-tax profit up 23.1% to £415m
- E-commerce sales surge 164%, now account for 19% of total sales
B&Q and Screwfix owner Kingfisher has sold its Russian chain, Castorama Russia, to Maxidom for £73m. The deal was completed on September 30th with an upfront payment of 80%, the remaining 20% to be paid in two equal instalments. CEO Thierry Garnier expressed gratitude towards Castorama Russia employees. Despite a 1.1% drop in sales to £5.9bn, pre-tax profit increased by 23.1% to £415m and e-commerce sales skyrocketed 164%, now representing 19% of total sales due to the pandemic’s DIY boom.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Kingfisher’s sale of Castorama Russia to Maxidom, the company’s performance in the first half of the year, and the increase in e-commerce sales due to the pandemic.
Noise Level: 3
Noise Justification: The article provides relevant information about Kingfisher’s sale of Castorama Russia to Maxidom and the company’s performance during the pandemic. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Kingfisher’s stock price and related companies in the home improvement sector
Financial Rating Justification: The sale of Castorama Russia impacts Kingfisher’s financial performance and operations, and the mention of e-commerce sales growth and DIY boom during lockdown affects related companies in the home improvement sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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