Woolworths-to-B&Q group Kingfisher is to divide itself into two separate companies.

The move will see it roll out 700 new or reformatted stores and create 20,000 jobs over the next five years.

The group is to separate its home improvements and electrical business, including B&Q, from its Woolworths and Superdrug stores to create two separately quoted companies.

Up to 200 existing Superdrug stores will be converted to a new Super D format over the next two years. They will focus on basic health, beauty, toiletries and household ranges at "unbeatable prices".

In addition, it intends to open 400 new format Woolworths General Stores over the next five years, which will combine a pharmacy with health and beauty, general merchandise and convenience food.

It will also accelerate the opening of its 90 Big W stores, which will offer ranges from Woolworths, Superdrug, B&Q and Comet stores, as well as clothing.

It expects to create a countrywide chain within five years, with each Big W store expected to employ about 250 people.

Kingfisher chief executive Sir Geoffrey Mulcahy said: "I believe this is the right move at this stage of Kingfisher's development for the businesses, for employees and for shareholders."

He added the businesses were both large and profitable and capable of substantial growth.