Home Bargains has published its annual accounts for the year ending 30 June 2019, showing a very positive performance from the variety discounter.
Turnover increased to £2,471m from £2,134m, a growth of 15%. This was driven by new stores, re-locating to better locations, and an increased contribution from existing stores. During the period the retailer opened 26 net new stores, bringing its estate to 506. Operating profit also increased 15% to £231m from £201m. The results build on the positive results seen in FY2017/18 when the retailer also achieved 15% growth.
Home Bargains will focus on three main areas to maintain its growth;
- Continue to expand the estate. The retailer has not set out detailed plans for the expansion, however it has said it wants to have between 800 and 1,000 stores in the future.
- Provide shoppers with quality products at bargain prices, with a focus on branded products.
- Drive excitement in store by offering shoppers new products with frequent changes to the range.
We are currently seeing many developments in the variety discount channel, as retailers look to appeal to different shopper missions and attract new shoppers. For Poundland, this has included trialling a new pricing structure and a frozen food range. B&M also looks set to build on its grocery range by rolling out its frozen and chilled range to a wider selection of stores. It will be interesting to see how Home Bargains responds to this as it differentiates itself from the other variety discounters through its larger grocery range.
Looking for more insight on the evolution of variety discounters?
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6-7 November, London
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