- UK like-for-likes fall 0.7% in the 13 weeks to December 26
- Strong Christmas trading with like-for-likes in positive territory
- UK sales up 24.4% reflecting store openings
Value retailer B&M has reported a slide in third quarter UK like-for-likes after unseasonal weather and supply chain disruption hit sales.
A drop of 0.7% in the 13 weeks to December 26 was the result of mild temperatures impacting sales of cold weather products, according to the retailer. It also said that previously reported “lower than normal service levels from our two new distribution centres” affected performance.
However, B&M enjoyed a strong Christmas trading period, reporting that like-for-likes were positive and that it had gained market share.
UK sales surged 24.4% to £614.5m in the 13-week period against the same period last year, reflecting the retailer’s aggressive store opening programme.
Total group revenues were up 23.5% at constant currencies to £647.8m.
“The business has delivered a resilient performance through peak trading despite the operational challenges of commissioning two large new distribution centres so late in the year.”
B&M chief executive Simon Arora
Turnover at its German business Jawoll fell from £34.1m to £33.3m. The retailer said it delivered a 7.8% increase in sales revenues in euros, but this translated to a decline of 2.1% on a sterling basis.
B&M trades from 487 stores, having adding 15 to its total in the quarter and a net 62 during the year to date.
Jawoll has 55 stores in Germany. Three stores were opened in the quarter and the retailer plans to open 10 more in the next financial year.
B&M chief executive Simon Arora said the performance demonstrated “the popularity of our model despite a challenging trading period for the whole retailing industry in the UK”.
He continued: “The business has delivered a resilient performance through peak trading despite the operational challenges of commissioning two large new distribution centres so late in the year.
“Our German business Jawoll has also performed well and we are taking our first steps towards a faster pace of expansion, with our distribution centre extension progressing well and with our trial stores trading in line with our expectations.
“The move up to 10 new stores planned for 2016/17 is a significant step in our long-term strategy for growth. Overall we are on track with our plans for the year as a whole and remain comfortable with market expectations for the full year.”