B&Q to create 4,000 jobs with growth of Warehouse format

B&Q, the DIY market leader, will create 4,000 new jobs next year by expanding its giant Warehouse format as it moves to maintain its position in a rapidly consolidating sector.

B&Q, the DIY market leader, will create 4,000 new jobs next year by expanding its giant Warehouse format as it moves to maintain its position in a rapidly consolidating sector.

The company, which has about 23 per cent of the DIY market, will open 25 Warehouse stores in 2001, with each employing up to 250 people, full and part-time.

B&Q, owned by Kingfisher, currently has 55 Warehouse outlets, each providing up to 120,000 sq ft of internal space - more than double the size of the company's traditional Supercentre stores. By 2004, B&Q wants 125 Warehouse stores, meaning about 10,000 jobs, over and above those planned for next year.

Dan Bernard, B&Q stores director, said: "Our focus is undoubtedly on Warehouse, which now contributes over 40 per cent of total sales. Just one Warehouse opening brings a big economic payback."

A Warehouse store provides sales of about £25m a year, compared with £10m annual revenues at a typical Supercentre, which will be maintained at its current level of 250 outlets.

Elsewhere on the high street, there was mixed news yesterday, with the clothing sector continuing to suffer, while food and luxury items retailers showed strength.

Asda, the supermarket, said that in the vital week leading up to Christmas day, sales were up 20 per cent on last year, although the period benefited from an extra shopping day this year.

Goldsmiths Group, the upmarket jewellery and watches retailer, said that like-for-like sales were 26 per cent higher in the four weeks to Christmas. Underlying sales for the 47 weeks to Christmas were up 9 per cent. Jurek Piasecki, chairman and chief executive, said: "Jewellery tends to do well when people feel good and then they are prepared to spend large amounts of money on it."

Marks & Spencer, however, came under renewed pressure. Analysts said yesterday that sales over Christmas were likely to fall short of even last year's poor performance.

John Baillie, of SG Securities, said that full-year profits forecasts, which average £503m pretax for the year ended 31 March 2001, now looked set for downgrades. "There is very little evidence of a recovery at M&S.... Now they will have to offer deep discounts to offload surplus stock in the January sales. But consumers are out there, spending money, if retailers get it right," he said.

According to leaks before Christmas, clothing sales at M&S were down 12 per cent in the six weeks to 16 December, leaving the retailer heavily dependent on an exceptional week's trading leading up to Christmas. Robert Miller, an analyst at Dresdner Kleinwort Benson, said: "I can't believe they rescued themselves over Christmas week. It would have to be an incredible last 10 days to make it up."

Analysts said shopping trends showed that people were increasingly reluctant to buy clothes as presents, knowing that clothing can be picked up cheaply in the post-Christmas sales. Instead, gifts such as electronic gadgets and micro-scooters have proved popular.

They added that the January sales, which started yesterday, would see steep discounting from the outset of the year, rather than the usual practice of phasing in progressively larger reductions. This was likely to hit margins. Yesterday, for instance, both Debenhams and M&S offered discounts of up to 50 per cent on the first day of their sales.