DIY group Kingfisher has extended its contract with logistics provider Damco through to 2014, it has been announced.
Covering the international supply chain management for a number of Kingfisher’s businesses across Europe, the contract includes the brands B&Q and Castorama.
Supporting cost reduction is the focal point of Damco’s strategy and this commitment as well as its stock management goals was key in Kingfisher’s decision to extend the contract.
In September, Kingfisher group announced a 24 per cent growth in pre-tax profits to £439 million over its first half period, while like-for-like sales grew 1.6 per cent despite poor trading at Screwfix and B&Q.
It is hoped that the extension of its logistics contract will help support the company as the DIY sector has struggled in recent times.
“We are delighted that the Kingfisher Group have decided to extend our contract through to 2014,” Chief Commercial Officer of Damco UK and Ireland Richard Morgan said.
“As a business, they work in an ever more competitive market and they need to ensure that they consistently improve their supply chain to maintain competitive advantage.
“Damco’s systems, people and expertise will be focused globally to deliver this advantage to Kingfisher and ensure that they are best positioned to win on the high street”.