B & Q, the world's third-largest do-it-yourself retailer, plans to enter the SAR market, which could deal a hammer-blow to smaller building materials firms. Benjamin Yuan Baiyun, vice-president of B & Q China, said the group was considering opening a store in Hong Kong as part of its mainland expansion. He said B & Q sold building materials at one-third the price offered in Hong Kong stores. 'The coming shop will hit some smaller operators' business,' he said. Mr Yuan gave no timetable for the planned opening but said the store would cover about 60,000 square feet. The firm says it is already drawing SAR consumers to its Shenzhen store. B & Q, controlled by a Fortune 500 company - British-based Kingfisher - opened a chain store in Shenzhen in March to capture consumer traffic from across the eastern Pearl River Delta region, Mr Yuan said. 'The reason we opened a store in Shenzhen is that the city is near Hong Kong and other Pearl River Delta cities,' he said. Partly due to strong buying by SAR conumers, its Shenzhen outlet was the best performing of its seven mainland stores. The store turned over about 200 million yuan (HK$189.41 million) in sales revenue over the past eight months, of which 15 per cent came from SAR buyers, according to Mr Yuan. Many commentators have argued that 48 months of consistent retail price deflation in the SAR has been caused by so-called price equalisation with mainland cities, as local residents flood across the border to shop.