Kingfisher shares up as group sets up B&Q investment

<p>Kingfisher shares have increased as the company prepares to invest in B&Q.</p>

Shares in Kingfisher have increased on the London Stock Exchange (LSE) this morning (October 16th), as the DIY retailing group plans to pump £60 million into its B&Q chain.

This is a shrewd business move for Kingfisher, as it aims to improve B&Q's online offering by doubling the number of products available via the web to 20,000 and introduce new services to customers.

The company will use Screwfix – a tools and electrical equipment supplier – as a model for improving B&Q's ecommerce platform.

Furthermore, Kingfisher is looking to take the Screwfix multi-channel system into overseas markets – further enhancing the company's outlook.

Chief operating officer at Kingfisher Euan Sutherland stated: "The Screwfix model's quite unique and I don't see it replicated anywhere else in Europe, so there's potential to take it out there."

At 11:45 BST, Kingfisher's shares rose 1.2 per cent on the LSE to 279.30p per share.

Find the latest strategies for CFDs for the FTSE 100 at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.