B&Q, Currys and PC World suffer amid consumer spending slump

B&Q, Currys and PC World are the latest retailers to suffer as consumers rein in their spending.

Kingfisher said sales at its DIY store chain B&Q were down 9.2%, as demand for items such as new kitchens and bathrooms have dwindled amid the housing market downturn.

According to Ian Cheshire, chief executive, consumer confidence has been knocked over the last few months by international economic events and this has impacted demand in all our markets.

Furthermore, Kingfisher said it had decided to abandon its Trade Depot venture after a review of its UK trade operations. The company said the move will mean it can concentrate on B&Q and Screwfix, where it has the potential for higher and faster returns.

Shares in Kingfisher have fallen 60% since reaching 280p in May 2007.

In the meantime, DSG International, the owner of Currys and PC World, has reported its first half-year loss today.

As with B&Q, DSG’s Currys chain has suffered as a result of the housing market downturn, as demand for white goods such as fridges and dishwashers has fallen.

The group said UK sales for the 24 weeks to October 18 were down 7% at Currys and 11% at PC World. The company reported a pre-tax loss of £61 million for the same period, compared with a profit of £51.4 million in 2007.

DSG, which is UK’s biggest electrical goods retailer, said it will take whatever action is necessary in order to survive the forthcoming recession.

Shares in the company have lost 90% of their value since the start of last year.

The news comes just one day after Woolworths and MFI have collapsed into administration.

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