B&M maintains strong growth as sales pass £1bn during lockdown
B&M European Value Retail hailed a “strong” first quarter as sales passed £1bn amid the coronavirus lockdown.
The figures
In the period between 29 March and 27 June, B&M reported 27.7 per cent growth in group revenue from £904.6m to £1.15bn.
B&M UK revenue for the period jumped 33.7 per cent to £987.8m, with like-for-like sales growth of 26.9 per cent compared to 3.9 per cent the previous year.
The company’s convenience store chain, Heron Foods, increased sales by 21.4 per cent to £113m. Its French business, Babou, generated £54m of revenue, a 25.7 per cent drop as a result of the closure of stores.
Why it’s interesting
In the UK, B&M has 656 stores trading but no new stores have been opened due to the impact of the coronavirus crisis. The firm said it expects to open net 30 new stores, with at least 15 net new Heron stores.
The company was classed an “essential” retailer by the government, so it has benefitted from remaining open throughout lockdown. Last month, B&M reported a sharp rise in sales as customers stockpiled groceries and DIY equipment.
Today B&M said there had been a steady recovery in like-for-like customer count after the initial decline during lockdown. This has likely coincided with the return of non-essential retail and the loosening of restrictions.
“Against a highly uncertain economic backdrop and continued impacts from Covid-19, B&M is in a strong position to continue to grow profitably in the UK and work continues to develop and prove the proposition in France,” the firm said in a statement.
Shares in the retailer are up 4.35 per cent.
What B&M said
Chief executive Simon Arora said:
“The group has made a strong start to the financial year, with a particularly strong performance in our UK businesses, and progress now resumed in France after an eight week closure period.
However as outlined at our preliminary results for the last financial year announced on 11 June 2020, there are a great deal of uncertainties ahead. The safety of our colleagues and customers remains our priority whilst we work hard to continue to meet our customers’ needs in these difficult times.”