The coronavirus pandemic has prompted sweeping changes to business models across retail. Companies are scrambling to boost their online capabilities, reduce costs and adapt to fast-changing consumer tastes.
Questor believes that DIY chain Kingfisher can successfully adjust its business to capitalise on the rapid evolution of shopping. The firm is introducing wholesale changes to how it operates, including major investment in its online offering.
It is responding to the growing popularity of e-commerce sales among the company’s customers since lockdown began. For example, the business recorded a rise in online sales of more than 200pc in May and June as demand among consumers rebounded sharply following a challenging first part of the year.
While the pace of online sales growth is likely to slow to some extent, the firm is redesigning its store operating model to allow for a more efficient “click and collect” service. It is also improving “last-mile” delivery options from its stores and into homes, while prioritising the introduction of new technology to improve the online experience for its customers.
As well as e-commerce investment, the company’s refreshed strategy includes a major reorganisation of its structure. This will provide its various retail brands – such as B&Q and Screwfix – with greater autonomy over the products they sell and how they are marketed to customers.
This should improve its ability to adapt to changing market trends in a fast-paced retail environment. It also focuses the firm’s appeal on local customer tastes, rather than an outdated one-size-fits-all approach across geographical locations.