The great entity

The current Kingfisher interim report is the first under the new CEO, Véronique Laury, and bears her hallmark. The report highlights the objective to enforce the “One Kingfisher” plan. The fact that the group language will be English in the future, the specific wish of the French boss, is just a marginal aspect.
There are more important things to be dealt with. For example, the number of SKUs will be drastically reduced. Currently, there are 393 000 in the whole group, only 7 000 of which are sold in at least two sales divisions. About 193 000 SKUs are non-listed products or products from past promotions. Under the slogan “Cut the tail”, they should disappear.
Kingfisher assumes that customer needs in the various countries and regions are more similar than different and therefore plans to radically standardise the current range of 200 000 listed products. Leaving just ten per cent to be locally adapted in the future.
An example: At present, there are 338 products in the product category batteries, of which only 36 will remain.

The unification has also major implications for infrastructure and the intercompany processes. Since July 2015, an IT platform has been undergoing tests in Ireland. The interim reports adds that this is a “key enabler” for the realization of “One Kingfisher”.
A further point is the purchase of goods not for resale (GNFR), an item that is a costly GBP 1.2 bn, and covers such things as, for example, advertising services, equipment and paper.
As for the retail formats, Kingfisher focuses on three types: the big box, the medium box and omni-channel, and all three are to be standardised across national borders.
During her speech at this year’s Global DIY Summit in London, Laury made the principles clear by which Kingfisher, under her leadership, would be oriented and the interim report once again confirms this by stating: “Home improvement is a great market with huge potential. [...] We can achieve significant benefits from unifying activities and standardizing processes. [...] Same products across Europe presented to customers in the same way.” Or in a nutshell: “One company culture”.