Kingfisher expands Music Video Club in challenge to WH Smith
Thursday 19 March 1998
MVC has 47 shops specialising in selling entertainment products to older, "lapsed" music buyers who find superstores such as HMV and Virgin too loud and intimidating. A further 20 branches will open this year.
Kingfisher is also adding a range of 7,000 books to its branch of MVC in Basingstoke, Hampshire, in a trial that could also have implications for WH Smith if extended to the whole portfolio.
MVC has signed up 2.5 million members to its club card which bestows discounts on purchases. The database will be used for marketing purposes. Kingfisher said it had not deliberately targeted Smiths but admitted that it could benefit from Smiths' decision that music was no longer a core activity.
The announcements came as Kingfisher unveiled record results for last year. Profits soared by 34 per cent to pounds 520.5m, helped by a 66 per cent increase in profits at B&Q, the DIY business and good performances from Woolworths and Comet.
Kingfisher shares soared 59p to a new high of 1,037p. The company is now proposing a two-for-one share split to improve liquidity.
Sir Geoff Mulcahy, chief executive, said the group was well placed to build on its good past performance. However, he did warn of a potential consumer slowdown: "There are signs that the five hikes in interest rates could be affecting consumer confidence." Sales growth at Comet has slowed a little in recent months, analysts said.
Sir Geoff announced further trials in home shopping. Woolworths tested a Christmas catalogue in some stores last year and is planning another mail out in spring. A "back to school" catalogue will be launched in the summer. At B&Q, it has set up a centre call centre for kitchen sales. Sir Geoff said Asia was a possible area of future expansion. Its two branches of B&Q in Taiwan are trading well.
In Europe, the group could afford an acquisition of up to pounds 1bn, he said, but added that nothing was on the agenda at the moment.
Investment column, page 24
- 1 VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
- 2 If you're not already angry about the migrant crisis, here's a history lesson to remind you why you really should be
- 3 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 4 Chaos breaks out in courtroom as father attacks killer of three-year-old daughter
- 5 I like Corbyn, but let's face it: we don't need another white man at the head of a political party
VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
Bank Holiday Monday opening times: Are Tesco, Asda and other supermarkets open today?
Rules on 5p plastic bags likely to lead to arguments at the check-out
The nine most warmongering countries in the world revealed
Isis releases graphic video showing four Shia 'spies' being burned alive in Anbar, Iraq
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...