B&M has announced double-digit sales and profit figures for the 52 weeks ending 25 March 2017.
Total group revenues up 19.4%
B&M has had a strong trading year, with total group revenues up 19.4%. UK sales grew by 18.4% to £2,252m while the company's German business Jawoll grew 34.4% to £178.4m. Like-for-like sales for the UK improved year-on-year significantly to 3.1% from 0.9%, with H2 LFL sales coming in at 5.4%.
Chairman Sir Terry Leahy has commented on the results: "B&M has delivered further strong increases in sales, profits and cash generation whilst pushing on with rapid store expansion in line with our strategy for growth. There was a robust return of trading momentum during the second half which has continued into the early weeks of the new financial year, affirming that B&M’s offer resonates well with customers during aperiod of economic uncertainty and profound structural change in retailing."
UK store target revised
B&M opened 53 new stores in the UK in 2016/17 (38 net), with 40-50 more stores planned for the year ahead. In light of the business' success, B&M has revised its overall UK store target from 850 to 950. The 2016/17 year ended with 537 UK stores and 75 German stores, with B&M looking to add a further 15 German stores in the 2017/18 year. Investment in a new warehouse management system has proved successful and will be rolled out from the pilot DC to all six in due course.
B&M's plans to drive sustainable growth are underpinned by the following strategic priorities:
- Delivering value to customers
- Investing in new stores
- Developing the international business
- Investing in people and infrastructure
With such solid financial results and a confident future strategy, B&M remains a strong player in the UK variety discount channel. Categories such as DIY and homeware along with seasonal, pet care, furniture and more have made B&M a destination store for non-food, and in turn creating a halo effect in driving shoppers to pick up grocery items merchandised at the front of the stores.
To understand key opportunities to unlocking growth in the UK variety discount channel, click here.