Inside B&M's three formats

Date : 07 June 2016

Following recent positive annual trading results, we explored each of B&M's UK store formats. Here we summarise what makes B&M and its suppliers stand out in the discount market.

Grocery: important to the offer

B&M's three formats are Bargains Store, Home Store and Home Store with Garden Centre. In all three, the customer journey starts with 'Manager's Special' grocery, which is unlike other variety discounters that tend to locate health and beauty in the first aisle. Grocery contributes to less than 50% of the floor space, however its location and focus on big household brands means that it is an important part of the retailer's proposition. The grocery offer is predominately focused on impulse, with B&M recently innovating with a 'A Taste of America' candy range.

Brands: opportunities to promote in-store

With brands being key to the offer, we are seeing B&M increasingly working with suppliers to highlight their brands in-store. While B&M has has long-term relationships with suppliers such as Duracell, we are now seeing more food and non-food suppliers recognising the growth potential in the discount channel. In-store, merchandising on gondola ends and pallets proved impactful when supported by clear point of sale.

Non-food: focus on home

As the name of the two larger formats suggest, B&M's core proposition is focused on items for the home and therefore the majority of space is dedicated to categories such as homeware, garden and DIY. The range within B&M is impressive, competing with the likes of Dunelm at one end and other high street discounters such as Poundland at the other. While price-points go over £100 for furniture, other items are priced at £1, competing more directly with the UK's single-price point discount players, making B&M accessible and affordable to all value-seeking shoppers. 

B&M store visit report

To gain more insight in to B&M's strategy and formats, click here.

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Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing UK discount channel. She brings food and wine retail and PR experience to IGD. To learn more about how IGD's research can benefit your business further, please get in touch.

@Priya_Retail