Kingfisher, Europe's biggest home improvement retailer, said uncertainty over the impact on the UK economy of a general election due by June was clouding the outlook for 2010. "As we look to next year, we have to recognise, particularly around the UK, a level of uncertainty," Chief Executive Ian Cheshire told reporters, after the company beat forecasts with a 28 percent rise in third-quarter profit.
"This could go either way next year, either taxes and unemployment will hit, or potentially post an election budget there may be an end to uncertainty and people can start to focus on the positives," he said. Kingfisher, which runs market leaders B&Q in Britain and Castorama in France, would focus on the self-help initiatives of cutting costs, revamping stores and improving its supply chain rather than count on a rebound in markets.
"We're well positioned if that happens but not relying on it," said Cheshire. Despite its caution, Kingfisher's performance added to evidence that consumer spending is picking up after a brutal downturn in late 2008 and early 2009. British retail bellwether John Lewis has forecast strong Christmas sales and reported department store sales up 22 percent in the week to November 28, while last week DSG International , Europe's second-biggest electrical goods retailer, reported a return to underlying sales growth in recent weeks.
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