Like-for-like sales at B&M UK returned to growth in the first quarter of its financial year, after falling for four consecutive quarters last year.
B&M UK like-for-like sales were up 1.3% in the 13 weeks to 28 June, driven by a good performance in April from general merchandise outdoor ranges, assisted by drier weather and Easter timing, according to the retailer.
However, in fmcg, B&M UK sales remained in negative like-for-like territory, it said, adding that performance in health & beauty and cleaning categories had been comparatively stronger in June following improvements in “operational execution”. Further work to strengthen its fmcg proposition continued, it said.
B&M UK revenue rose 4.7% to £1.1bn, while group revenue, including Heron Foods and B&M France, was up 4.4% to £1.4bn
B&M UK opened 18 stores gross in the period, and was on track to open 45 stores gross in the full year, it said.
Lower average selling prices have hit B&M’s gross margin in some general merchandise categories, according to the update, though from quarter two this effect should be annualised, with newer ranges introduced with higher bought-in trading gross margin.
Heron Foods revenue fell 0.4% to £138m. The company said the frozen food chain continued to trade profitably and work to strengthen its revenue growth continued.
“My early days spent listening to and learning from our passionate colleagues and customers have underlined for me the strength of our value-focused model, which is more crucial than ever in the current challenging economic climate,” said B&M CEO Tjeerd Jegen, who took up his role at the business in June.
“While B&M UK’s like-for-like sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the golden quarter. Looking ahead, my focus is on building on our strong foundations, leveraging our market position, and continuing to deliver exceptional value for our customers.”
In pre-recorded presentation for investors, Jegen said that about half of the 1.3% like for like growth at B&M UK was down to favourable weather and the timing of Easter. “On the line, it’s still a subdued number, and clearly our ambitions and aspirations are larger than the 1.3% we just recorded,” he said.
B&M said its new Ellesmere Port import centre had recently commenced operations and it would shortly begin the planned relocation of its Middlewich distribution centre ahead of lease expiry in August 2026
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