Strong first quarter for discount giant B&M
Liverpool-based discount retailer B&M European Value Retail reported strong revenue growth for its first quarter, today.
A trading update covering the period from April 1, to June 30, revealed total group revenues of £796.3m, compared with £656.3m the previous year, which was a 21.4% increase, and 1.6% improvement on like-for-like trading.
The group said its ‘disruptive value model’ continues to prove highly attractive to customers.
Four new B&M UK stores opened in the quarter, including one relocation, reflecting the phasing of the new store opening programme being weighted towards the second half of the financial year.
B&M is on track for 50 gross new stores in the year as a whole
Four new stores also opened in the quarter by the group’s value convenience store chain, Heron Foods, which continues to trade well on top of a good performance in the prior year.
And encouraging progress is reported at the German arm of Jawoll, with revenue growth of 7% in the quarter.
B&M achieved revenues of £648.3m, compared with £598.4m; Heron turnover was £86.1m, and Jawoll’s figure of £61.9m was up from £57.9m.
Chief executive Simon Arora said: “The business has performed strongly in the quarter, despite demanding comparables of +7% like-for-like’s in the previous year and a sluggish market environment.
“Our competitively priced ranges for garden and outdoor leisure have been very well received and they are achieving great rates of sell-through.
“We have enjoyed record sales in these seasonal product categories, which is a testament to the appeal of our highly disruptive business model.
“I would like to thank all our colleagues for their hard work and success in delivering B&M’s best ever Q1 early Summer Trading season.”
At the end of the quarter the Speke-based group’s UK business had 846 trading stores, having opened eight gross new stores, after five net of closures and relocations, with the B&M estate now trading from 578 stores and the Heron format from 268 stores.
The group expects to open at least 45 net new B&M stores in this financial year, mostly in the second half of the year.
It also expect to open between 15 and 20 Heron Foods stores and 10 Jawoll stores in the financial year.
