B&M store target increases to 1,200
B&M has increased its long-term store target to no less than 1,200 locations, as the variety retailer ups its earnings guidance for the 2024 financial year.
This target is increased from B&M’s previous ambition of 950 new stores it set in 2017.
Currently, the retailer operates 712 UK stores under the B&M brand and 328 under the Heron Foods and B&M Express brands. It also operates 119 B&M stores in France.
Over the next three years, the retailer plans to open at least 125 stores, supported by its recent acquisition of 51 former Wilko stores. In total, B&M has a store target of 35 new units in the current financial year and no less than 45 in each of the next two years.
During the first half of the 2024 financial year – which comprises the 26 weeks ending 23 September – B&M opened 13 new stores, a net increase of five.
B&M said that during the period, its existing UK stores saw a like-for-like sales increase of 6.2%.
The retailer’s group revenue increased by 10.4% year-on-year to £2.5bn, whilst adjusted operating profit increased by 19.1% to £263m.
As a result, B&M has adjusted its earnings (EBITDA) guidance for the 2024 financial year to between £620m and £630m, materially higher than in 2023, when earnings reached £573m.
Alex Russo, B&M chief executive, said: “I am delighted that many of our existing shareholders […] continue to see our long-term growth potential. With our new store number guidance (of not less than 1,200 B&M UK stores) and continued like-for-like growth, we have the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential.”
B&M is currently in the process of actively seeking new sites across the UK, targeting both in and out-of-town locations.