... indicators are pointing towards a gradual recovery in consumer and housing spending in the UK, as reflected in the group's recovering sales so far in 2014. France, Kingfisher plc's second core market, however, continues to remain subdued due to a lack of stimulus of private consumption and a weak housing sector. Self-Help Measures Support Profitability: Kingfisher has focused on restructuring its store network and integrating its online offering. Fitch Ratings does not expect any meaningful improvement in profit margins, as in our view, any benefits from these measures will be reinvested in Kingfisher's value proposition. However, such strategy remains critical to managing the effects of significant operational leverage and counterbalancing pressures from both cyclical demand and structural changes experienced in the industry. Active Portfolio Management: Fitch takes a positive view of Kingfisher's increasing presence in the fragmented...
