B&M Bargains currently has 373 stores in the UK

B&M Bargains chief executive Simon Arora believes there is potential to open more than 350 stores in Germany.

Arora, who confirmed plans for a £2bn IPO this week, said last month’s acquisition of 50-store strong German discounter Jawoll was “just the beginning”.

“When you look at the total size and robust growth in the German discount market, and the fact we have 373 stores in the UK, there’s definitely the potential to mirror that over there,” Arora told The Grocer.

“This week, we have appointed Harry Brouwer, who is currently executive VP of Unilever Germany, and Thomas Hübner, who was once CEO of Metro AG’s cash & carry business to our board; I think that is a signal of intent.”

Arora said he wanted B&M to become the European version of Dollar General, which has sales of $17bn and more than 11,000 stores. B&M plans to open 40 to 50 UK stores a year - 50% of which will be based in the South - creating 1,500 new jobs annually.

B&M’s sales grew 28% to £1.29bn in the year ending 29 March 2014. EBITDA rose 24% to £130m.