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B&Q An Economic Analysis

1 B&Q Background
B&Q PLC is the UK retail arm of Kingfisher Group PLC and is the UK’s leading DIY and garden centre retailer.
It was founded as a privately held company in Southampton, England in 1969 and went public in 1979 before acquiring Scottish DIY chain Dodge City in 1980. B&Q was itself acquired in 1980 by F. W. Woolworth only to be sold two years later to current owners Kingfisher Group. B&Q PLC contributes 45% of Kingfisher’s total retail sales.
B&Q dominates its sector, in competition with three other large UK DIY superstores; Homebase; Wickes; and Focus; as well as a large number of much smaller retailers and builders merchants.

Figure 1: Market Share and Profit per %point of share (Source: Mintel, Fame)
Figure 1 shows B&Q’s market dominance with a 49% share of retail sales and also highlights the profitability of its operations, delivering around 30% more profit from each percentage point of market share than its two closet rivals.
2 Vulnerability and......


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Approximate Word Count: 3184
Approximate Pages: 13 (250 words per double-spaced page)

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