B&M: update on Q1 and outlook for 2015

Date : 20 July 2015

B&M has announced strong group sales growth for the 13 weeks to 27 June 2015, up 24.4% on last year to £456.6m.

UK sales up 22.8%

B&M's UK business achieved double-digit growth during the quarter with total sales increasing by 22.8% to £418.8m, up £77.6m on the previous year. Like-for-like sales also showed positive sales growth, however at a more modest 1.1%. This can be attributed in part to the increasingly impressive store standards and ranging across the variety discount players in the UK.

Store estate grows to 450

At the end of Q1, the discounter had 450 UK stores having opened 25 new stores in the quarter, taking it over halfway to its target of 850. By the end of the year B&M plans to have opened 80 net new stores, taking its estate to over 500 stores. This will drive the discounter's competitiveness in the UK market where high street discounters are becoming increasingly favoured by shoppers as a destination for both impulse food items and personal care in particular.

Update on German pilot stores

General merchandising discounting is underdeveloped in the German market, creating a large opportunity for Jawoll. The discounter has been trialling two new smaller stores in Germany for potential rollout of the format across the country. As the trial stores are trading in line with budget, we can expect more stores of the trial format to open this year. Jawoll stores are mostly located in the north-west at 28,000 sq ft, however the smaller 10,000 sq ft aims to broaden the store opening opportunities. To support the retailer's growth plans, expansion of the distribution centre will continue this year, with a view to be completed by March 2016.

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