B&M to open 45 new stores despite UK sales slump

B&M is planning to open 45 new stores this year despite reporting weaker sales across its estate.

The discount chain reported like-for-likes in the UK fell 3.1% to £4.5bn in the year to 29 March and were down 2.4% in the final 12 weeks.

Across the wider group, the retailer posted a 3.7% increase in sales to £5.6bn during the year thanks to new store openings and a positive performance in France helping to offset a weaker performance in the UK.

B&M said its garden, toys, paint and stationery categories underpinned performance for its UK business, while its FMCG offer delivered a negative like-for-like despite being positive in total sales value and volume growth.

The retailer reported that actions were underway to improve its FMCG LFL performance.

It opened 45 new stores in the UK during the year, which it said were performing “in line with our expectations and are generating strong returns”. It expects to open the same number in the forthcoming year.

B&M’s group adjusted EBITDA is expected to be above the midpoint of its £605m to £625m guidance range.

It noted the board was making progress on finding a replacement for outgoing chief executive Alex Russo, who is retiring from the company at the end of this month, and expects to make an announcement in the coming weeks.

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