Sales at B&M in the UK have taken a dive in the discounter’s first quarter, dealing a blow to its turnaround drive.
While UK revenues nudged up by 0.3% year on year to £1.1bn, like-for-like sales in the group’s home market declined by 2.3% in the 13 weeks to 27 June. Its like-for-like performance was considerably worse than the 0.1% dip in Q4 and 0.6% fall in Q3 of the prior financial year.
B&M said the Q1 drop was expected, and it blamed a slower start for garden and outdoor sales compared with the same period a year again when the “unusually early warm and dry weather” drove a 10.9% rise in like-for-like sales in April 2025.
Trading margins in the UK fmcg business remained below prior year levels as B&M continued to invest in price to battle rivals in a competitive marketplace. Margins in general merchandise were better than a year ago, which is expected to continue as autumn and winter collections land in stores.
Group revenues at B&M in the first quarter rose 2% to £1.4bn, helped by a 14.6% jump in France to £156m and a 2.8% increase at Heron Foods to £142m.
A turnaround plan is underway at B&M under CEO Tjeerd Jegen. The Back to B&M Basics strategy kicked off in late 2025 and is focused on trimming SKUs, clearing discontinued stock, improving promotions and sharpening prices.
Jegen said this morning that B&M continued to deliver on the turnaround plan to support a recovery in like-for-like fmcg sales at the UK business.
“This includes sharpening our fmcg ranges through SKU rationalisation, which is now well underway across our UK stores and will be 75% complete by the end of July. Our B&M UK general merchandise trading margin continued the upward trend we communicated with FY26 results, which together with our ongoing focus on cost mitigation underscore our confidence in rebuilding group profitability over time.”
He added the first quarter of the financial year was seasonally the most variable for sales.
“Against this backdrop, the like-for-like sales decline at B&M UK was expected, but it was pleasing to see our general merchandise categories return to growth in May and June, and our garden and outdoor inventories ending the season at normal stock levels.
“France performed strongly, showing how consistent execution of the B&M model can drive higher footfall and positive sales in a competitive retail market. As with Heron, which also delivered positive sales growth in the quarter, the smaller contribution of garden and outdoor categories to sales resulted in a like-for-like performance that is less impacted by seasonal factors, and more in keeping with the outcome we are working hard to achieve for B&M UK under Back to B&M Basics.”
At the end of June, B&M announced it had appointed Atheeq Akbar as its new permanent finance chief.
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