Openings spree boost B&M’s growth

DISCOUNT retailer B&M is continuing its rapid store opening programme, with 25 stores opened in just 13 weeks.

The Liverpool-based company said its aggressive spree of expansion was being aided by “particularly favourable current market conditions and specific opportunities in the commercial property market”, and it expects to have opened 80 shops this financial year.

In a trading update for the 13 weeks to June 27, group sales were up 25.3% on a constant currency basis.  

The UK business’ sales revenue for the 13 week period increased by 22.8% to £418.8m (2014: £341.2m) with like-for-like sales growth of 1.1%.

B&M now has 450 stores in this country and plans to get to 850 as it expands furter, particularly in the south.

The company, led by the Arora brothers who have transformed it from a small regional outfit to a key player in the discount market, is also growing in Germany, and has been piloting a new format store there.

Despite a fall in the rate of like-for-like sales growth – this time last year it was 6%, the business was not too downbeat, stating: “The positive like-for-like performance this quarter is testament to the robust and balanced nature of the business model, as it was achieved despite disappointing weather in May which held back sales of outdoor seasonal products.

“Whilst UK market conditions are competitive for grocery and FMCG products, the business delivered positive like-for-like growth over the quarter in this category, despite the deflationary backdrop.

Chief executive Simon Arora added: “I am pleased to report that the group has delivered another strong Spring trading period. We have opened 25 stores in just 13 weeks, which is a record rate of openings, and testament to the hard work and dedication of our colleagues. As consumer spending improves, it is apparent that shoppers remain keen to spend with value retailers and we continue to win market share.”