B&Q sales fall as households cut back

The retailer's decision to run fewer promotions contributed to the downturn as B&Q's like-for-like sales fell 4.3 per cent in the 10 weeks to July 10, compared with a drop of 2.8 per cent in the first quarter of its financial year.

A stronger performance in France, where the company operates Castorama and Brico Depot, reduced the drop in group same-store sales to 0.8 per cent in the quarter.

Chief executive Ian Cheshire said: "This is a solid performance in an uncertain environment for our customers right across Europe."

He said pressure on consumer spending was most noticeable in the UK, where it has run targeted promotions in order to drive profitable growth and has "vigorously" controlled its costs.

Sales of seasonal categories were flat and demand for kitchens, bathrooms, bedrooms and larger building categories fell as a result of fewer promotions and weak consumer appetite for bigger ticket purchases.

At the other end of the scale, B&Q sold 5,000 World Cup garden gnomes and nearly 2,0000 football bean bags.