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

Discounter B&M Sees Sales Falter Due To Tough Comparatives

B&M European Value Retail has reported a fall in underlying sales in its home UK market in its latest quarter, reflecting a tough comparison with the same period last year, which corresponded with he start of lockdown measures.

The discount retailer said like-for-like revenue at its B&M UK business fell 4.4% in the 13 weeks to June 26, its fiscal first quarter, compared growth of 24.5% in the second half of its 2020-21 year.

However, compared to the period to the first quarter two years ago, like-for-like revenue was up 21.3%, the company said.

The group had previously reported a 25.9% increase in full-year revenues.

'Strong Start' To The Year

"The group has made a strong start to the new financial year and sales remain significantly above pre-pandemic levels. As expected, trading throughout the first quarter was volatile as we annualised against the high comparatives from last year," commented Simon Arora, B&M chief executive.

"Although there remains much uncertainty as to how consumer spending evolves over the coming months, we remain optimistic that our combination of exceptional value across a wide range of product categories and our convenient out-of-town locations will continue to resonate with customers."

Volatile Trading Patterns

B&M said trading patterns were volatile throughout the quarter, with a pull-forward in gardening demand boosting revenue in the final two weeks of the 2020-21 year and early weeks of 2021-22, and also depressing the subsequent weeks.

It said overall group revenue rose 3.1% in the quarter. Revenue at its UK business came in at £1.02 billion, with Heron Foods contributing £101.7 million, and its Babou business reporting revenues of £68.5 million.

B&M said while it continued to be too early to 'accurately predict likely revenue and profitability' outcomes for 2021-22, the group was on track with its plans for the year and expected the two-year like-for-like measure in the core B&M UK business to remain strong.

Shares in B&M, up 16% so far this year, closed on Wednesday at 577 pence, valuing the business at £5.8 billion.

News by Reuters, edited by ESM. For more Retail news, click here. 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