B&M’s already strong performance has been further boosted by demand for its value-oriented product range during the coronavirus pandemic.
Total group revenue surged up 27.7% to £1.15bn during its first-quarter to 27 June. This was driven by its core B&M chain in the UK where total sales rose by 33.7% to £987.8m on the back of extra stores and like-for-like growth of 26.9%.
B&M highlighted that its like-for-like customer count gradually recovered in the period following an initial decline at the start of the lockdown. With most general merchandise stores closed during the period, B&M benefitted from consumers buying its DIY and gardening products. The group stated that its transaction values have been at “significantly elevated” levels.
At the end of the quarter, there were 656 stores trading under the B&M fascia compared to 632 at the same time last year. However, the group didn’t open any new stores in the last quarter after its development programme was hit by the pandemic. At least 30 net new stores are planned for the year as a whole, with openings weighted towards the second half.
The group’s Heron Foods convenience store chain increased sales by 21.4% to £113m, driven primarily by “strong” like-for-like sales growth.
However, its Babou chain in France saw sales plummet 25.7% to £54m as a result of a period in which all its stores were closed due to the local government’s lockdown measures. The group is currently in the process of converting the 102 stores in the country to the B&M format.
In an update last month, B&M suggested it is in a better position than many other retailers as the UK emerges from lockdown and cash-strapped consumers focus on value in the months ahead.
It said today: “Against a highly uncertain economic backdrop and continued impacts from Covid19, B&M is in a strong position to continue to grow profitably in the UK and work continues to develop and prove the proposition in France.”
However, Chief Executive Simon Arora highlighted that there are a “great deal of uncertainties ahead”, adding: “The safety of our colleagues and customers remains our priority whilst we work hard to continue to meet our customers’ needs in these difficult times.”
NAM Implication:
- Simple question: How did your B&M business compare?
