B&M reports strong first-quarter growth

Merseyside-based value retailer B&M has achieved strong growth in the first quarter of its current financial year.

In the 13-week period ending June 27, the company experienced total group sales growth on an actual currency basis of 24.4% and a total sales revenue of £456.6m, compared to £367m at the same point in 2014.

At the end of Q1, the company had 450 stores trading in the UK, with 25 new branches having opened during the period. Now, the business is expecting to open another 80 stores across the country in the remainder of its financial year.

B&M reported that the performance of the new UK stores has been strong, with a ‘good number’ of them being top performers during the quarter.

The chief executive of B&M, Simon Arora, said: “I am pleased to report that the Group has delivered another strong Spring trading period.

“We have opened 25 stores in just 13 weeks, which is a record rate of openings, and testament to the hard work and dedication of our colleagues.”

He added: “As consumer spending improves, it is apparent that shoppers remain keen to spend with value retailers and we continue to win market share.”

The company’s two new-format stores being piloted in Germany are operating in line with budget. B&M plans to open more in the current financial year while it awaits growth in its warehouse capacity, which is planned for March next year, and is expecting to increase its current market share in the European nation.

The positive like-for-like Q1 performance was achieved despite May’s disappointing weather, which is is believed to have dampened sales of B&M’s outdoor seasonal products.