The retailer’s aggressive store openings plan and pricing model proved a boon during the pandemic, as staff are awarded bonus payment.
Discount retailer B&M has posted strong revenue growth over the Christmas period. Group revenue is +22.5% in the 13 weeks to 26th December, growing to £1.4b from £1.1b in the same period last year. B&M’s UK stores achieved revenue growth of +26.6%, and like-for-like sales increased +21.1%.
However, B&M added that it was reducing its profit guidance to £540m to £570m for the year; the company was choosing to pay £80m in business rates for the year, which could have been subject to relief under the government’s emergency support measures.
The retailer says its out-of-town store locations proved a draw amidst the pandemic, which has seen shoppers increasingly favouring retail parks with nearby parking over town centres and shopping malls. B&Ms discount pricing model has also been popular with consumers feeling the affect of Covid-19 on their income or savings.
B&M also opened 16 new stores in Q3, bringing the total number of 2020 store openings to 45.
Heron Foods, B&Ms value convenience store chain, opened two new stores in Q3 and witnessed what the company is describing as ‘solid’ like-for-like sales growth, while its French fascias – Babou and B&M France – recorded a slight drop in revenues of -1.4% due to a four week lockdown which ended 28th November.
“We are awarding some 30,000 store and distribution colleagues an extra week’s wages in recognition of their considerable efforts,” B&M chief executive Simon Arora said. “The safety and wellbeing of our customers and colleagues has remained our priority during these unprecedented times, whilst we have worked hard to provide customers with the everyday essentials they need. Notwithstanding our status as an essential retailer, with lockdown restrictions in the UK having tightened, there remain uncertainties ahead. With our combination of exceptional value and convenient out of town locations, we are confident that our business model will prove highly relevant to the needs of customers in 2021.”