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Andy Hall Andy Hall is offline
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Default The biggest B&Q markup... ever?

On 2006-08-11 17:39:06 +0100, "jim_in_sussex" said:


Andy Hall wrote:
On 2006-08-10 12:24:01 +0100, said:


Christian McArdle wrote:
B & Q apparently have more than 300 outlets scattered across the UK
whereas
Screwfix and Toolstation have only about 20 between them so they're not
really competing in the same market.

B&Q and Screwfix are, however, the same company.


Actually not - both are part of the Kingfisher Group.

This is not a reason why the same products or same prices should be
available from both - they have completely cost structures and business
models


Even though they may be leagally separate companies (although
subsidiaries of the same parent company) they do not operate at arms
length.


The group companies actually have quite a complex ownership structure,
probably for accounting and tax reasons.


There is a considerable overlap in product range indicating a common
stocking system. The true position is that the 2 are more like
divisions of 1 large company.


Still not relevant. They have different business models and cost
structures. It's not reasonable to expect the prices to be the same.


Further Kingfisher has made plenty of public indications that B&Q
stores are to be moved towards the more prissy end of the market (cf
Homebase) & Screwfix outlets are being established to cater for the
hard end ie mainly trade. B&Q has announced plans to upgrade around
300 of its stores.


So there's your answer.