16:22 h / 2021/01/07
The retailer’s aggressive store openings plan and pricing model proved a boon during the pandemic, as staff are awarded bonus payment
Discount retailer B&M has posted strong revenue growth over the Christmas period. Group revenue is +22.5% in the 13 weeks to 26th December, growing to £1.4b from £1.1b in the same period last year. B&M’s UK stores achieved revenue growth of +26.6%, and like-for-like sales increased +21.1%.
However, B&M added that it was reducing its profit guidance to £540m to £570m for the year; the company was choosing to pay £80m in business rates for the year, which could have been subject to relief under the government’s emergency support measures.
The retailer says its out-of-town store locations proved a draw amidst the pandemic, which has seen shoppers increasingly favouring retail parks with nearby parking over town centres and shopping malls. B&Ms discount pricing model has also been popular with consumers feeling the affect of Covid-19 on their income or savings.
B&M also opened16 new storesin Q3, bringing the total number of 2020 store openings to 45.
Heron Foods, B&Ms value convenience store chain, opened two new stores in Q3 and witnessed what the company is describing as ‘solid’ like-for-like sales growth, while its French fascias – Babou and B&M France – recorded a slight drop in revenues of -1.4% due to a four week lockdown which ended 28th November.