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

British Discounter B&M To Review Future Of German Business

Fast-growing British discounter B&M European Value Retail said on Tuesday it is undertaking a review of its German unit Jawoll to determine the future of the business.

The group, a general goods retailer selling anything from furniture to electricals to food, said Jawoll saw profit decline in its first half to September 29 due to distribution issues and weak sales.

Profit Decline

B&M's overall pretax profit fell 70.5% to £32.2 million (€37.5 million), which included an impairment charge of £59.5 million (€69.2 million) relating to Jawoll.

Group revenue increased 12.4% to £1.76 billion (€2.05 billion).

The group trades from 645 stores in the UK operating under the B&M brand and 290 stores under the Heron Foods and B&M Express brands. It also has 98 stores in Germany primarily operating under the Jawoll brand and 99 stores in France, trading at Babou.

Sales Performance

First half like-for-like sales at the B&M UK stores business rose 3.7%.

"We have delivered a solid overall first half performance driven by our core B&M UK stores business, which constitutes 86% of Group sales," commented Simon Arora, the group's chief executive.

"Our existing stores performed consistently well through the last two quarters, generating half year LFL of 3.7%. The current crop of new stores also achieved especially strong results. The core business has made a solid start to the second half of the financial year. Heron Foods has continued to grow in the UK and we remain very pleased with the overall progress of that business."

News by Reuters, edited by ESM. Click 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