Budget supermarket B&M has reported higher sales as it said its food and homeware was appealing to shoppers at a time when budgets remain under pressure and taxes are rising. The Liverpool-based retailer said it generated revenues in the UK of £2.1 billion over the six months to September 28.
This was 3.7% higher than the prior year. However, it was 3.6% lower when compared like-for-like to 2023, which strips out the sales impact of new store openings. B&M opened 30 new shops in the UK over the half-year period, and was aiming to open 45 by the end of the financial year.
The chain said discounting remains strong across the country, and that growing grocers like Lidl and Aldi were complementary to its own range of ambient food. B&M said prices on some consumer convenience products are 15-20% lower on average compared with mainstream supermarkets.
Chief executive Alex Russo said: “Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase. We have made significant progress over the last three months in general merchandise, particularly in home, with the range strengthened and prices lowered further to drive volume market share.”
The retailer, which sells a range of household and DIY products, food and clothing, has 764 B&M stores in the UK and also runs shops in France and the Heron Foods brand. It said its “long-term goal” was to have at least 1,200 shops in the UK over the next decade.
The business also acquired a number of store locations from rival retailer Wilko, which collapsed into insolvency last year and was forced to shut hundreds of shops. B&M has since opened 44 former Wilko shops with eight more to open in the second half of the year.
It is also planning to open a new UK imports centre in Ellesmere Port, in Cheshire, to support the increasing volume of shipments. B&M said it was in a good position to benefit from the typically busier Christmas season, despite an uncertain consumer environment. It reported a nearly 2% decline in its adjusted operating profit of £258 million for the latest period.