UK based retail group Kingfisher will open nine new home improvements stores in Russia over the next two years, it was confirmed today.
The B&Q owner already has 17 stores under the Castorama banner in the country and plans to invest a further £115 million by 2013 by opening four to five stores each year.
Since launching in the country in 2006, Castorama has spread to 12 cities across Russia including Moscow, St Petersburg and Samara, and sales for the region grew 39 per cent to £240 million during 2010/2011.
Ian Cheshire, CEO of Kingfisher, commented: “Russia represents a major opportunity for Kingfisher.
“Our trading performance there has been encouraging and we look forward to opening these nine new Castorama stores and many more in the future.”
Like many big name retailers in Britain over the last year or so, Kingfisher has been forced to look abroad for business growth as domestic trading weakens due to squeezed household finances.
In the latest results from the group in July, overall UK sales fell 5.5 per cent on a like-for-like (LFL) basis during the second quarter, with the LFL trading performance of -6.7 per cent year-on-year for B&Q especially poor.
Total group sales were up 1.5 per cent during the period however as expansion into international markets such as China proved profitable.
Cheshire said at the time: “We expect to emerge from this year in excellent shape and well prepared to start delivering the next phase of our growth plans.”