B&M to target 40 new stores a year

31st May 2023 | Jack Oliver

B&M has said it will accelerate its store opening programme to 40 stores a year, with around 30 new stores expected by the end of the financial year.

However, the discount retailer said it will not open unprofitable stores just to meet a target.

This comes as B&M releases its financial report for the year to March 25 (FY23), a period in which it said it had looked to deliver growth through its existing store estate.

The retailer said it had made “major improvements” in store standards and product availability, leading to improvements in like-for-like sales. In the second half of FY23, B&M saw like-for-like sales growth of 5.1% in the UK.

“Our stores have the capacity to keep growing their sales for many years ahead. Due to operational gearing and no extra capital, such growth should be highly profitable, should deliver incremental returns on investment and should allow further reinvestment back into lower prices to drive further profitable growth”, the retailer said.

B&M’s annual report revealed mixed results, as revenues increased while profits fell compared to the previous year.

Total group revenues at the discount retailer reached £4.98bn in FY23, up 6.6% against 2022, and 30.7% higher than pre-Pandemic levels.

However, adjusted profit before tax fell by 12.6%, down from £524m to £459m.

Alejandro Russo, B&M chief executive, said: “The underlying strategy remains unchanged with the focus on simplicity and low costs across our four channels of growth, which are improved sales in existing stores, the expansion of our store estate in the UK, expansion in France and continued growth in Heron, our UK convenience store operation”,

“The long-term outlook for B&M remains very positive, with many years of profitable growth ahead. In the UK, B&M has a small market share and even less in France. Market share in both countries can be substantially higher and as we execute our strategy, we will deliver compounding earnings growth and cash returns for shareholders.”


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