FT Live Future of Retail 2025: Kingfisher CEO discusses store and online operations merging

“We started our e-commerce at scale journey during the Covid pandemic when there was a huge boom during 2021,” said Kingfisher CEO, Thierry Garnier, speaking at the FT Live Future of Retail event in London yesterday, while adding it hasn’t gone away, even though the boom has slowed. He also called for fairer UK business rates for physical stores.    

“E-commerce at B&Q now constitutes 20% of our business,” said Garnier, as he explained how the pivot towards e-commerce has meant Kingfisher, which owns such retailers as B&Q and Screwfix, has had to work harder on its data. “We’ve got a data lake now for instance.”   

Combining the company’s huge store estate with its digital offering – and their respective data – is a challenge, but one they have risen to. “Click and Collect is huge for us, representing 88% of all our e-commerce,” said Garnier, as he outlined how the two can coexist in retail operations.    

“Additionally, Screwfix can deliver in 20 minutes to 60% of UK postcodes [because of our store footprint],” he added, while explaining Kingfisher’s strategy of focusing on: Customer experience; Unifying online and in-store data and operations.    

Would you start a new business in this way, though, asked the conference session moderator, Jonathan Eley, Long Form Editor at the Financial Times (FT).

“You have to leverage your assets,” responded Garnier, neatly avoiding a direct answer, although he did point to his experiences in China as a pointer to the direction of travel - with the caveat that each market is different.

“I spent eight years in China, where stores orders are much less, so I’ve thought about this a lot,” said Garnier. “It’s really only fresh goods in-store in supermarkets China, for example, with the other grocery items stored in a ‘dark’ store for e-commerce initiated delivery. This is logical in a digital era.”  And if you’re starting a new company it might make sense too.

However, if you’re in charge of a pre-existing company then preparing orders in-store and using it as a stockroom - as well as a showroom - makes sense, as it limits your fixed costs, while maximising your potential revenue.

Kingfisher also has diversified markets, explained Garnier, pointing to how it can show, sell, and install your kitchen via its B&Q stores and associated installation relationships, or deliver tools to those in the trades in-store or via its online e-commerce offering.    

Fair tax plea for bricks and mortar stores

One difference where the juxtaposition between the online and in-store world was grating to the Kingfisher CEO, however, was in how they are treated for tax purposes. Garnier, speaking ahead of the imminent UK budget, called on the UK government to do something to address this. It’s particularly an issue after last year’s budget hit retailers hard in regard to rising national insurance (NI) costs for their staff.

“My number one expectation for us is to have fairer business rates,” he said, referring to how stores on UK high streets up and down the land pay more in tax than their online counterparts do for their out-of-town real estate delivery properties and indeed just generally for their online operations, which may earn more in revenue, but pay less tax. 

“The business rates system in the UK is really unfair,” said Garnier. “It doesn’t exist in any other European country.” 

The issue was addressed at the Conservative Party conference this week, where they promised they would try to address the issue if they get back into power, which is a big if after they only left power a year ago, and are currently stuck behind Reform, Labour and the Lib Dems in the polls.

However, the fact business rates on their agenda shows that the issue is rising up the political spirit level in the UK. Watch this space to see if the aforementioned budget does anything to address it.

2025 RTIH INNOVATION AWARDS

Online retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now closed for entries with our finalists and shortlists being announced last week, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.