Variety discount retailer B&M’s Q1 results (29th March 2020 to 27th June 2020) show continued strong growth in the first quarter of the financial year and particularly its UK banner. Its value-led model and convenient out of town locations continue to prove to be attractive to customers.
Revenue growth across all banners expect Babou
- Group revenue +27.7% to £1,154.8m (2019: £904.6m)
- B&M UK +33.7% to £987.8m (2019: £738.9m)
- Heron Foods +21.4% to £113.0m (2019: £93.1m)
- Babou (France) -25.7% to £54.0m (2019: £93.1m)
Improving performance as lockdown lifts
The B&M UK business reported significantly elevated levels of average transaction value this quarter (+62.5% versus last year) and extremely strong like-for-like sales up +26.9% year-on-year, against comparable like-for-likes of 3.9% in that period.
While customer count initially saw a declined during lockdown, this is now gradually recovering.
While the French business, Babou showed a revenue decline this quarter due to store closures during lockdown. since store re-opening on 11th May 2020 there has been a bounce-back, as positive like-for-like sales growth was reported.
Slowdown in store openings
B&M UK had 656 trading stores versus 632 at the end of Q1 in FY20, with no new stores opened this quarter.
Heron Food opened two new stores and had a total of 295 stores.
Babou, reported two new store openings in this quarter and a total of 102 French stores have resumed trading.
The variety discount retailer also announced the UK business is expected to open at least 30 new stores and Heron Foods to open at least 15 new stores towards the end of this financial year. Also, three more new stores will open in France this financial year, all under the B&M banner.
Despite the uncertain economic climate due to the pandemic, B&M is in a strong position to grow its profits in the UK market and works to continue to develop and prove its position in France.
Looking for more insights?
Find our B&M Q4 results for FY20 here
Read more in our round-up of the latest initiatives seen in the discount and variety discount channel in the UK to address the challenges created by the Coronavirus (COVID-19) here