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

UK Retailer B&M Names CEO Arora's Successor, Warns On Profit Margin

Discount retailer B&M European Value Retail has named finance chief Alex Russo as the successor to long-time chief executive Simon Arora, who is retiring next year.

"Since joining the group, Alex has made a very positive contribution to the business," commented Peter Bamford, chairman. "He has demonstrated strong leadership skills and a deep appreciation of the B&M culture and business model, making him the outstanding candidate for the role."

The retailer, which sells everything from food to homewares, gardening and do-it-yourself products, warned of lower profit margins this year as customers spend less on discretionary products due to red-hot inflation and the cost-of-living crisis.

Full-Year Performance

B&M reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £619 million (€726.5 million) for the year ended March 26.

This financial year's core profit is expected to range between £550 million to £600 million, lower than last year but still ahead of pre-pandemic levels.

The group operates over 1,100 stores across the United Kingdom and France.

Share Price Impact

Though B&M performed well during the pandemic its shares are down over a quarter so far this year, hurt by the outlook for consumer spending and April's announcement that Arora would retire after over 17 years at the helm.

Britons are facing a squeeze on their disposable income, with inflation hitting a 40-year peak of 9% in April and projected to rise further.

"However, we have seen before that during such times customers will increasingly seek out value for money, and B&M is ideally placed to serve those needs," Arora said in an earnings statement.

To cushion the blow the government last week announced a £15 billion package of support for households struggling to meet soaring energy bills.

News by Reuters, edited by ESM – your source for the latest retail news. 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