B&M has released a promising trading update for the first quarter of its FY24. Covering the 13-week period from 26 March 2023 to 24 June 2023, the report outlines continued strong and profitable trading momentum across all three of the company’s fascias.
The Group has experienced a robust total revenue growth of 13.5% in Q1, meeting its internal expectations. B&M UK has shown particularly impressive like-for-like (LFL) growth of 9.2% in Q1. This healthy growth has been driven by consistently strong and positive LFL transaction numbers and spans both grocery and general merchandise categories.
Interestingly, the ongoing cost of living crisis may be playing a role in B&M’s continued success. With inflation squeezing household budgets, more consumers are becoming savvy shoppers, seeking value and bargains wherever they can. B&M, with its focus on offering value, is ideally positioned to cater to these customers.
The report goes on to highlight that B&M UK’s general merchandise sales participation and sell-through have been excellent. It is clear that stock and cost disciplines remain firmly embedded across the Group, contributing to the overall strong performance in the first quarter of FY24.
Alex Russo, the Chief Executive of B&M, has expressed confidence in the company’s ongoing success. “Our strong trading momentum demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail standards,” he said. “The business is well positioned as we start to transition to our autumn winter season. We will continue to work hard to help all our customers manage the cost-of-living crisis.”
Commenting on B&M’s quarterly trading update, Julie Palmer, partner at Begbies Traynor said:
“The cost-of-living crisis isn’t bad news for everyone: discount retailer B&M is reaping the benefits of being perfectly positioned to cater to increasingly hard-pressed consumers looking for bargains. First-quarter sales up almost 10pc on a like-for-like basis when many other retailers struggle underlines how shoppers are trading down.
“As times get harder and with food prices rising relentlessly, shoppers who might have previously dismissed B&M are finding that the retailer’s pile-it-high, sell-it-cheap approach is what they need.
“Now with global supply chains pretty much normalised, what B&M calls its ‘disruptive’ strategy of sourcing many of its wares from China to get the best deals means that its stores’ shelves are brimming again.
“Although it has more than 1,000 stores across the UK, B&M isn’t as well-known as many retailers. As the cost-of-living crisis runs on I think we can expect that to change.”
