Value retailer B&M has reported a growth in sales and revenue as it said it is “well positioned” for golden quarter as it continues to focus on “price, product and standards”.
The retailer recorded a 3.7% increase of group revenue to £2.6bn, with B&M UK revenues making up £2.1bn of the total, in the 26 weeks to September 28.
Group adjusted operating profit reached £258m in the first half of the financial year, compared with £263m during the same period last year. Group adjusted EBITDA rose 2% to £274m.
B&M opened 39 new stores across its divisions over the first half; with 30 B&Ms in the UK, five in France, and four Heron Foods stores.
It plans to open a further 45 stores in the UK this year, with a similar number of openings being targeted the following year. Eight more ex-Wilko stores are set to open in the second half of the year.
The retailer added its long-term goal is to reach “not less than 1,200 B&M UK stores” in the next decade, based on “demographics, store performance, and competitor weakness”.
B&M said it is “confident” on its outlook for the second half and full year due to growing volume momentum and strength in general merchandise.
B&M chief executive Alex Russo said: “Our model is underpinned by a disciplined and low-cost approach across all three of our businesses, focusing on simple, sustainable growth, delivered through the hard work of our teams.
“Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase. We have made significant progress over the last three months in general merchandise, particularly in Home, with the range strengthened and prices lowered further to drive volume market share.
“Our new store opening programme is on track and performing exceptionally well. To futureproof this volume growth, I am pleased to announce that next year we will open a new imports centre in Ellesmere Port.
“This facility will manage inbound container flow and optimise the capacity of our five existing B&M UK distribution centres which are handling ever-growing volumes. This is the right productivity step to support both our short and long-term growth plans, including our target of not less than 1,200 B&M UK stores.”
No comments yet