B&M 'making progress' on new CEO as UK like-for-like sales fall

The discounter has been on the hunt for a new chief executive following the departure of Alex Russo. 

B&M reported a 3.7% increase in group revenues to £5.6bn for its 2025 financial year, driven by new store openings and a strong performance in its French business, which offset falling like-for-like sales at its UK operation.

The group, which also owns frozen food chain Heron Foods, saw B&M UK’s like-for-like sales decline by 3.1% across the full year. In the fourth quarter, UK like-for-like sales fell by 1.8% over the 12 weeks to 22 March 2025, or 2.4% when measured over 13 weeks.

B&M’s French business delivered positive growth of 2.6% for the year and 3.2% in the fourth quarter.

Despite the UK performance, B&M said its general merchandise sales values and unit volumes increased in Q4 on both a like-for-like and total basis, highlighting a strong performance in garden products, toys, paint and stationery categories.

However, FMCG delivered negative like-for-like results, though it maintained positive total sales value and volume growth. B&M stated that “actions are underway to improve FMCG like-for-like performance”.

The retailer continued its expansion strategy, opening 45 gross new B&M UK stores during the year, in line with previous guidance. These new locations are “performing in line with our expectations and are generating strong returns,” according to B&M, and the pipeline for FY26 “continues to be robust” with plans for another 45 new store openings.

International growth also progressed with 11 new stores in France and 14 new Heron Foods locations in the UK.

B&M said its gross margin remained “robust,” helped by total volume growth and relatively stronger trading in general merchandise categories. Operating costs increased by approximately 6%, reflecting the 5% growth in store numbers, greater volumes and higher wage rates, though the company noted these had been “partly mitigated by productivity gains”.

The retailer now expects its adjusted EBITDA for FY25 to exceed the midpoint of its previously announced guidance range of £605m-£625m.