Kingfisher, the giant retail chain that also owns Woolworths UK, is planning to invest £750m in 125 new B&Q Warehouse stores on out-of-town sites.

Geoff Mulcahy, chief executive of Kingfisher, said the move "will help ensure that B&Q maintains its record for growth and for consistently outperforming the market and its competitors."

Kingfisher has recently created Europe's largest DIY group by merging its B&Q subsidiary with the French Castorama group.

Increasing competition

The DIY market in the UK has become increasingly competitive in recent years, as Sainsbury's Homebase and B&Q have gained market share at the expense of smaller rivals like Do It All.

Do It All has struggled through different owners

Do It All was recently sold by Boots to the venture capital-backed firm Focus.

B&Q has increased its market share in the UK from 15% to 20%, and the huge B&Q Warehouse stores have been an important reason for that gain. With only 30 Warehouse stores so far, compared to 254 smaller Super Centres, they make up one-third of B&Q's turnover.

Now Kingfisher plans to double the number of new Warehouse stores it had planned to build. Each store carries some 40,000 lines and has an area of 100,000 - 150,000 square feet.

Castorama: merged with B&Q

Some observers have questioned whether this is the right time for a big expansion, with the household goods market mired deep in recession.

But Kingfisher, which is expected to finance the move from its own resources, clearly believes that now is the time to steal a march on its weaker rivals.

Kingfisher shares were up 10p or 2% on the news, while shares in rival Sainsbury's were down 2p.