B&M’s sales increase despite ‘difficult’ UK retail environment
B&M saw its group revenue climb by 9.3% at constant currency in its third quarter despite a decision not to carry out any early discounting activity.
In the 13 weeks to 28 December, revenue at UK B&M stores rose by 8.8% to £957.4 million and by 0.3% on a like-for-like basis. The company said like-for-like sales were held back by disappointing sales in the toys and seasonal confectionery categories but this was offset by a good performance in its home departments.
B&M refrained from participating in any early or unusual discounting in the period and instead focused on it cash margin.
Simon Arora, B&M chief executive, said: “Against the backdrop of a difficult UK retail environment with reduced shopper footfall and political uncertainty, our core B&M UK business generated continued growth and delivered a record level of peak season sales. Cumulatively, B&M UK has achieved 2.3% like-for-like sales growth during the financial year to date, albeit with a slower performance than anticipated during the run-up to Christmas.”
The group’s Heron Foods business increased its revenue by 6.2% to £95.6 million while the French Babou chain achieved a 29.3% uplift in sales on a constant currency basis.
In contrast, Jawoll’s revenues fell by 1.5% to £53 million. B&M is currently carrying out a strategic review of the business.
B&M said its January trading has started well but warned that the sales could be impacted by any adverse weather during the remainder of the winter trading period.
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