B&M: Festive season of bargain shopping helps ‘undistracted’ value retailer

Value retailer B&M Bargains reported strong revenue growth throughout the golden quarter as consumers sought out low-discount options to meet their festive shopping needs.

In a third quarter trading update to markets today , the Liverpool-based firm, which includes Heron Foods, said group revenue was up 3.5 per cent year-on-year.

That number fell for B&M’s UK arm alone, however, with only a 2.8 per cent growth for the 13-week period between 29 September and 28 December 2024.

B&M’s bargain supermarket chain Heron Foods was also down 5.6 per cent, despite the group’s chief executive Alex Russo ensuring the business “remains undistracted by the current economic headlines.”

A continued uptick in overall revenue, as also highlighted in a trading update in November, could be a sign consumers haven’t fully recovered from the cost-of-living crisis and are still seeking out cheaper goods.

Russo added: “Our operating model is well set up to give customers exceptional value when they need it most.

“Pricing, availability, store standards and a disciplined opening programme will underpin positive volume growth across our ranges.”

The positive momentum was most seen within B&M France amid a quarterly growth of 12.5 per cent.

The bargain retailer boss announced the lowering of its previously disclosed profit guidance, now expecting it to be in the range of £620m to £650m.

“Our strategy is clear – we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest,” Russo said.

He added: “This allows us to drive volumes by offering our best-selling products at exceptional value to every customer.

“Through this volume growth, and with our leading return on capital business model, we continue to generate profit and cash returns for our shareholders.”

New year, new boss?

B&M opened 39 new stores in the first half of the year, bringing its total to 764. It said it aims to operate 1,200 UK stores.

However, the year has still proved tough for the bargain retailer amongst a number of pressure on incomes and higher tax burdens.

Just last month, B&M hired the chief executive of Iron Bru maker AG Barr as it battled a slump in its share price.

Euan Sutherland is set to become a non-executive director at the Liverpool-headquartered company from 20 January, 2025, subject to shareholder approval.

If appointed, Sutherland will also join the remuneration and nomination committees.