B&Q set to grow – but on a small scale

Chief executive Ian Cheshire said Kingfisher, already experimenting with smaller, town-centre stores in France and Russia, hoped to bring the concept to its UK chain B&Q within 18 months.

"There are 60 catchments where there isn't a B&Q within 20-minute drive time where you have got more than 40,000 people," he said, adding these were mostly in densely populated areas such as London or in market towns.

He said the stores would be about 35,000-40,000 square feet in size, big enough to carry a broad range of products, but smaller than B&Q's current mini format.

They would also have a greater focus on homewares and would step up the challenge to rivals like Homebase, which is strong around London, and Focus DIY, which is in market towns.

The initiative is part of a broader focus on innovation as Kingfisher looks to grab the imagination of shoppers.

Mr Cheshire said Kingfisher was harnessing the creativity of its French arm for the group as a whole.

New products from France will include click-fit tiles and a space-saving eco toilet with a built-in wash basin.

He was optimistic the global economy was over the worst and that steps to rein in government borrowing – which may include a rise in VAT sales tax in a UK emergency budget on Tuesday – would not throw countries back into recession.

But he saw little prospect of much growth in do-it-yourself either. "I wouldn't be at all be surprised to see slightly minus markets for the next two years," he said of Britain.