Business
Sales surge as DIY giant capitalises on Homebase store closures
Home improvement giant Kingfisher has significantly boosted its financial outlook, driven by robust trading across its UK brands, B&Q and Screwfix.
The retail group highlighted particularly strong sales at B&Q over the past six months, attributing this success to the market impact of Homebase store closures following its rival’s administration, alongside favourable weather conditions.
This strong performance has propelled the company to anticipate profits reaching the “upper end” of its current targets.
Kingfisher informed shareholders on Tuesday that pre-tax profits for the half-year ending July 31 climbed by 4.1 per cent to £338 million compared to the previous year.
The London-listed firm now expects to achieve an adjusted profit at the higher end of its £480 million to £540 million guidance for the current financial year.
Furthermore, the company has revised its cash flow projections upwards, now forecasting between £480 million and £520 million, an increase from its earlier guidance of £420 million to £480 million.
The improved targets came on the back of stronger sales across the group’s brands, particularly in the UK.
Total group sales grew by 0.8 per cent to £6.81 billion for the six months, with like-for-like sales rising by 1.9 per cent.
Like-for-like sales were up 3.9 per cent in the UK, driven by growth of 4.4 per cent in B&Q and 3 per cent in Screwfix across the half-year.
There was increased demand for paint, with sales of coloured emulsion up 10 per cent at B&Q, alongside a further recovery in demand for big-ticket items.
This was driven by “demand for new kitchen ranges” and bathroom and storage products.
It represents a continued recovery in demand for larger products after it had cooled in the face of the surging cost of living.
Kingfisher also told investors that its UK stores were boosted by “transference from the closure of Homebase stores”.
Major B&Q rival Homebase shut more than 50 stores by March of this year after tumbling into administration late in 2024.
Thierry Garnier, chief executive officer of Kingfisher, said the company saw a “good transfer” of former Homebase customers to its B&Q stores and cheered the opening of eight former Homebase shops as new B&Q sites.
He said the stores, which included five in the UK and three in Ireland, have performed strongly after a quick turnaround to reopen during the peak trading season.
The company said it has also worked to offset significant cost pressures this year, with around £145 million of headwinds linked to higher National Insurance contributions, wage inflation, new UK packaging taxes and increased social taxes in France.
In the UK, earlier this month B&Q confirmed plans to cut around 650 jobs in a management shake-up amid efforts to streamline its operations but bosses stressed this was not linked to increases in National Insurance.
Mr Garnier added: “We delivered a strong first half with high quality underlying like-for-like sales growth of 1.9 per cent, driven by increased volumes and transactions.
“We were encouraged by underlying quarter-on-quarter growth in our core categories, and a third consecutive quarter of growth in big ticket sales.
“Our expectations for our markets for the year remain consistent with what we outlined in March, whilst mindful of mixed consumer sentiment and political uncertainty.
“Combined with our first-half performance, this gives us the confidence to upgrade our full-year profit and free cash flow guidance and to accelerate our share buyback programme.”
Last Updated:
Accenture plans a new campus in Visakhapatnam, Andhra Pradesh, aiming to add 12,000 jobs, following TCS and Cognizant, amid changing US visa and outsourcing policies.
Accenture (File Photo)
Tech consultancy Accenture has proposed setting up a new campus in the southern Indian state of Andhra Pradesh, aiming to eventually add about 12,000 jobs to its workforce in India, three sources familiar with the matter told Reuters.
The move follows similar deals by IT firms Tata Consultancy Services and Cognizant, which are leveraging a new state policy offering leased land at 0.99 rupees ($0.0112) per acre to large firms willing to generate employment.
India is already Accenture’s largest employee base globally, with more than 300,000 of its 790,000 employees based in the country.
As part of the proposal being reviewed by the state government, Accenture has requested land of about 10 acres in the port city of Visakhapatnam on similar terms, the sources said, requesting anonymity as the matter is private.
Accenture did not respond to Reuters’ request for comment.
The Andhra Pradesh government is eager to bring in Accenture, a state official said, adding that while approvals may take time, the proposal is expected to be cleared.
“It is not an unreasonable ask by Accenture, and the proposal will go through,” the official said on condition of anonymity.
It is not immediately clear how much Accenture intends to invest in setting up the campus.
TCS and Cognizant secured land leases under the policy to build campuses that could generate around 20,000 jobs in Visakhapatnam. Cognizant will invest $183 million, while TCS has earmarked slightly over $154 million for its facility.
Technology firms have been increasingly expanding to smaller Indian cities to tap lower land, rent and wage costs. Post-pandemic, many find it easier to hire locally in Tier-2 cities, reversing the earlier trend of workers migrating to major tech hubs.
This move comes amid U.S. President Donald Trump’s policy change requiring a $100,000 fee for new H-1B visas, widely used by tech firms to hire skilled foreign talent. The move is expected to hurt the IT sector, by far the largest beneficiary of H-1B visas last year.
The sector also faces uncertainty as customers could delay or re-negotiate contracts as the U.S. debates a proposed 25% tax on American firms using outsourcing services.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 23, 2025, 18:23 IST
Read More
Last Updated:
The EPFO offers 8.25% annual compound interest, while SIPs are market-linked with higher potential returns but also risk. Proper planning ensures a secure retirement
The key benefit of EPF investments is that up to Rs 1.50 lakh is tax exempt per financial year. (Representative/Shutterstock)
As the concern for retirement looms large over every employed individual, the question of financial security post-retirement is a pressing one. Without a job, expenses remain unchanged, and relying solely on the Employees’ Provident Fund (EPF) may not suffice.
Here’s how individuals can prepare for old age while still working:
What Is EPF?
The Employees’ Provident Fund (EPF), managed by the EPFO, is a retirement investment plan where employees contribute up to 12% of their basic salary and DA monthly. Employers match this contribution, with a minimum of Rs 1,800 and a maximum of 12% of the employee’s basic salary and DA.
Of this 12 percent, 8.33 percent goes to the EPF, while the remaining 3.67 percent is allocated to the Employees’ Pension Fund (EPS), which provides a monthly pension upon retirement.
The EPFO offers an annual compound interest rate of 8.25 percent on these contributions. Employees also have the option to exceed the 12 percent contribution limit, with the excess amount being credited to the Voluntary Provident Fund (VPF). The key benefit of EPF investments is that up to Rs 1.50 lakh is tax exempt per financial year under Section 80C of the Income Tax Act, 1961, and the interest earned and maturity amount are tax-free.
EPF falls under the exempt-exempt-exempt (EEE) category. However, in VPF, tax exemption applies only up to 12 percent of the basic salary and DA, with returns on contributions above this amount being taxable. Given these significant tax benefits, experts often recommend investing up to the 12 percent limit.
Understanding SIP
Another investment option to consider is a Systematic Investment Plan (SIP) in mutual funds. SIPs allow individuals to invest a predetermined amount daily, monthly, quarterly, or annually. The investment amount can be increased annually through top-up SIPs. SIPs offer rupee-cost averaging, where the net asset value (NAV) fluctuates with market conditions.
When the market is high, fewer SIPs are purchased, but the investment value increases; when the market is low, more NAVs are acquired, but the investment value decreases. Additionally, SIP investments benefit from compounded growth, allowing investments to grow exponentially over time.
Investors who prefer smaller, regular contributions over lump sum investments often choose SIPs.
EPS vs SIP: How To Reach Rs 1.5 Crore Target Faster
Comparing EPF and SIP, if one aims to reach a retirement goal of Rs 1.50 crore, it’s essential to note that EPF offers guaranteed returns in the form of interest, whereas SIP is market-linked with potentially higher returns but also risks of negative returns if the market falls.
Since the exact returns of a SIP are uncertain, a standard 12% return is assumed for calculation purposes.
If one starts contributing at the age of 25, continuing until 60, EPF will require a monthly investment of Rs 6,350 to achieve a corpus of Rs 1.50 crore, yielding Rs 1,50,29,133.18 after 35 years.
Conversely, with SIPs, a monthly investment of Rs 6,350 starting at age 25 can reach the Rs 1.50 crore goal in 27 years, with an investment amount of Rs 20,57,400 and long-term capital gains of Rs 1,34,15,875, totalling Rs 1,54,73,275.
September 23, 2025, 18:32 IST
Read More
Amazon plans to close all 19 of its grocery shops across the UK, putting as many as 250 jobs at risk.
The firm will look to convert up to five of the Amazon Fresh shops, noted for their walk-in walk-out style with no checkouts, into Whole Foods stores.
Amazon said the move is part of a wider overhaul of its UK grocery operations, which will shift focus more towards its online business. Its bosses have said that the firm is still “deeply invested” in the UK.
The US-based company said on Tuesday that it had launched a consultation process proposing the closure of the Amazon Fresh UK stores.
It is consulting with employees at the sites, which employ around 250 staff. However, it said not all employees are set to be affected by the closures, and it plans to offer those who are new roles in other parts of the business.
Recently, the company pledged to invest £40bn in Britain across the next three years.
The Fresh brand was first launched in 2021, opening its first till-less store in Ealing, with technology that allowed customers to walk out with their shopping without having to use a checkout. Shoppers used an app to enter the store and were then billed to the platform when they left, with a range of cameras and other technology used to work out which products they purchased.
However, the group slowed down significant growth ambitions for the business as shopper demand waned at the end of the coronavirus pandemic.
As part of the proposals, five shops could transition to Amazon’s Whole Foods Market brand, which focuses on organic produce. It said the conversion plan, along with two further new sites, is expected to grow the Whole Foods business to 12 stores by the end of next year.
On Tuesday, Amazon also said it plans to double the number of Prime subscription members with access to at least three of the retailer’s grocery options, through its partners Morrisons, Iceland, Co-op and Gopuff.
It also said it will introduce fresh groceries including dairy, meat and seafood to its website from next year.
John Boumphrey, country manager for Amazon UK, said: “Since 2008, we’ve worked hard to innovate to help our customers save time and money when shopping for groceries and household essentials.
“We continue to invent and invest to bring more choice and convenience to UK customers, enabling them to shop for a wide range of everyday essentials and groceries with low prices and fast delivery through Amazon.co.uk, Amazon Fresh, and Whole Foods Market stores, alongside our third-party grocery partners, including Morrisons, Co-op, Iceland, and Gopuff.”
Amazon is estimated to employ more than 75,000 people in the UK, the majority across its warehouse and delivery operations.
In future up to 2,000 new jobs could be created at new warehouses in Hull and Northampton.
It has been reported that Amazon Fresh contributed $5bn (£3.7bn) in revenues during one quarter in 2024, but this is across all grocery sales online and in physical stores, as well as being global rather than just UK-focused.
Amazon paid £1bn in UK taxes on revenues of over £29bn last year.
Last week, Amazon announced it would offer employees a pay rise above inflation levels, increasing its minimum wage to £14.30 an hour.
Trump’s Tylenol Directive Could Actually Increase Autism Rates, Researchers Warn
Trump says Ukraine can retake all land seized by Russia
Physics-based algorithm enables nuclear microreactors to autonomously adjust power output
-
Fashion1 week agoUK retailer ASOS & ITF sign deal to protect transport workers’ rights
-
Tech1 week agoHow AI Is Upending Politics, Tech, the Media, and More
-
Fashion1 week agoIndia’s new GST makes artisan-made ethnic wear costlier
-
Fashion1 week agoONLY, RE&UP, Deniz Partner to Advance Circular Fashion
-
Tech1 week agoApple’s iOS 26 and iPadOS 26 Are Available Now. Here’s What’s New on Your iPhone and iPad
-
Tech1 week agoThe Moccamaster Is Built for a Lifetime—and You Can Save $40 Right Now
-
Fashion1 week agoFrance’s Kering & Mayhoola reaffirm long-term Valentino partnership
-
Tech1 week agoArchitecture’s past holds the key to sustainable future