B&M enjoyed "strong, profitable trading momentum" in its Q1 to 24th June, with total group revenue up +13.5% YoY, in line with internal expectations.
B&M UK enjoyed LFL growth of +9.2%, with both grocery and general merchandise categories performing well, driven by consistently strong and positive LFL transaction numbers, says the retailer, adding that general merchandise sales participation and sell-through has been "excellent", in part thanks to stock and cost disciplines remaining firmly embedded across the group.
Chief executive Alex Russo says: “Our strong trading momentum demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail standards. The business is well positioned as we start to transition to our autumn winter season. We will continue to work hard to help all our customers manage the cost of living crisis.”
Commenting, Julie Palmer, partner at Begbies Traynor, says: “The cost of living crisis isn’t bad news for everyone – discount retailer B&M is reaping the benefits of being perfectly positioned to cater to increasingly hard-pressed consumers looking for bargains. First-quarter sales up almost +10% on a LF basis when many other retailers struggle underlines how shoppers are trading down.
“As times get harder and with food prices rising relentlessly, shoppers who might have previously dismissed B&M are finding that the retailer’s pile-it-high, sell-it-cheap approach is what they need. Now, with global supply chains pretty much normalised, what B&M calls its ‘disruptive’ strategy of sourcing many of its wares from China to get the best deals means that its stores’ shelves are brimming again.
“Although it has more than 1000 stores across the UK, B&M isn’t as well known as many retailers. As the cost of living crisis runs on, I think we can expect that to change.”
