B&M ‘has right model for today’s difficult retail environment’

Discount retailer B&M European sees continued long-term growth in the current economic conditions, it said in its results announcement for the year to March 31, today.

The Speke-based group reported a 22.4% increase in revenues of £2.976bn, while pre-tax profits of £226.1m were a 23.6% improvement on the previous year’s £182.9m.

The group grew its footprint by 51.5%, from 612 stores last year to 927 today, including 576 B&M stores, 265 Heron Foods, and 86 Jawoll, its German chain.

B&M is continuing its expansion programme with a large new, 1m sq ft southern distribution centre now under construction in Bedford which, when commissioned by Spring 2020, will support the group’s UK expansion needs for the foreseeable future.

The group said it has made a “pleasing” start to the first quarter of trading, with a 3.1% like-for-like increase across B&M stores in the UK, excluding the Easter week.

Chief executive Simon Arora said: “B&M has delivered another set of strong results by doing what we do best, which is providing great value week-in, week-out on the things customers buy regularly for their homes and families.

“None of our success could have been achieved without the hard work and dedication of the thousands of B&M colleagues across the group, and on behalf of the board I would like to thank them for all their efforts.”

He added: “The B&M model is highly relevant for the current difficult economic environment, with its strong position in the value and convenience areas of retailing where physical stores are winning.

“The business is well placed for continued profitable, long-term growth.

“In a retail sector beset by structural challenges, B&M’s unique, disruptive model stands out as a success story.

“We look forward to the year ahead and into the longer term with confidence.”