Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

B&M's Sales Growth Slows In Key Christmas Quarter

Britain's B&M, whose stores sell everything from furniture to electricals to food, said its sales growth slowed in the key Christmas quarter due to a tough market and a decision not to engage in early discounting activity.

The London-listed retailer said on Friday like-for-like sales in its core B&M UK business rose 0.3% in the 13 weeks to Dec. 28, its fiscal third quarter. That compares to first half growth of 3.7%.

Its shares fell 6% in early trading.

'Slower Performance'

"Cumulatively, B&M UK has achieved +2.3% like-for-like sales growth during the financial year to date, albeit with a slower performance than anticipated during the run up to Christmas," said Chief Executive Simon Arora.

He highlighted the backdrop "of a difficult UK retail environment with reduced shopper footfall and political uncertainty."

A raft of trading updates this week have shown UK retailers struggled for sales growth in the run-up to Christmas.

For B&M, which has a full name of B&M European Value Retail, overall group revenue rose 9.3% on a constant currency basis over the quarter.

It said it had seen a positive start to January trading and looked forward to 2020 with confidence.

Store Portfolio

The group trades from 657 stores in the UK operating as B&M and 295 Heron Foods stores. It also has 96 stores in Germany, primarily operating as Jawoll and 100 Babou stores in France.

In November, B&M wrote down the value of the loss-making Jawoll unit and put it under review.

It said on Friday that review was ongoing.

Shares in B&M, up 28% over the last year prior to Friday's update, closed Thursday at 397.2 pence, valuing the business at £3.98 billion.

News by ReutersClick subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days