B&M has revealed double-digit sales and profit figures in its latest results for the 26 weeks to 24 September 2016.
Group revenues up 18.9%
Group revenues increased to £1,105.9m, up 18.9% (17.7% at a constant currency), with B&M up 18.0% to £1,017.0m and Jawoll up 29.6% to £88.9m. Group adjusted profit before tax increased by 17.2% to £77.9m, up £11.5m on the previous year. Like-for-like sales in the UK increased by 0.2%, which includes the planned impact of nearby openings. B&M continues to focus on its four strategic priorities:
- Deliver great value to shoppers
- Investing in new stores
- Develop the international business
- Invest in people and infrastructure
30 net new stores
B&M has opened 20 net new stores this year in the UK, with an aim to open at least 30 more stores before the end of the year. Expansion in the south remains a priority, however B&M continues to seek sites across the country as it builds the estate to its potential of 850 stores. The small but growing German business Jawoll opened 10 net new stores in H1, and is on track to open 19 new stores this year. According to the retailer, Q3 has started well, with preparations set up in-store and throughout the supply chain for the upcoming Christmas trading period.
Inflation likely in 2017
While B&M says it is currently unaffected by the EU referendum result, with no negative impact on customer behaviour to date, there will be some currency impact to the business next year due to direct sourcing from China. B&M plans to minimise the effect of this on the categories that are likely to be impacted, siting financial strength, buying scale and efficient sourcing as ways of tackling this.
|Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing discount channel. To learn more about how IGD's research can benefit your business further, please get in touch - [email protected]|