As part of its growth, B&M expects to open between 40 and 45 new stores in the UK.
Discount retailer B&M Bargains has reported strong growth in sales and said that UK sales increased encouragingly over the last three months. The company has raised its half-year profit guidance as a result.
It expects to post an adjusted EBITDA of £285m for the six months to 26th September, compared to its previous range of £250m to £270m. Meanwhile, group revenues rose by 25.3% during the period, with its UK stores recording a revenue growth of 29.5%. On a like-for-like basis, UK sales increased by 23%.
As part of its growth, B&M has stepped up plans for new store openings this financial year after seeing an uplift in leasing activity. The retailer is now looking to open between 40 and 45 stores in the UK, most of which are likely to launch during its fourth quarter, adding to a store estate of more than 600 branches in the UK.
B&M chief executive, Simon Arora, commented: “Our group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations. Our people have risen to the many challenges posed by the Covid-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience.”
Amy Higginbotham, a retail analyst at GlobalData, commented that the UK lockdown had provided conditions for B&M to thrive. Its low prices appealed to shoppers during the current economic uncertainty while its large out-of-town stores “allow shoppers and staff to adhere to social-distancing guidelines.”
B&M will publish its interim results on 12th November.