B&M gets lockdown sales boost as customers turn to DIY
Discount chain B&M today reported a sharp rise in sales as customers stockpiled groceries and DIY equipment during the coronavirus lockdown.
In the first eight weeks of the new financial year the retailer posted a 22.7 per cent rise in life-for-like revenue, as surging demand for gardening and DIY products offset a decline in customer numbers.
B&M, which was classed as an “essential” retailer by the government, said it had benefitted from other DIY retailers and garden centres being forced to close, while warm dry weather and the lockdown also boosted sales.
Excluding DIY and gardening, the company’s like-for-like revenue was up 10.3 per cent in the first eight weeks.
B&M also reported robust trading for the fourth quarter ended 28 March, when like-for-like revenue rose 6.6 per cent.
The Liverpool-based retailer said this was driven by an exceptionally strong performance in its grocery division in March as Brits stockpiled provisions in the run-up to lockdown.
The group also reported a strong performance for Heron Foods, which primarily sells frozen foods.
B&M said the 49 stores it closed during the lockdown had all now reopened, but warned it did not expect current levels of trading to continue as normal shopping patterns resumed.
“We have encountered exceptionally strong demand in our UK business over recent weeks,” said chief executive Simon Arora.
“Customers have been coming to our stores much less frequently through the lockdown but their average spend has been much higher than normal.”
But the B&M boss said “considerable” uncertainty about Covid-19 and the economic outlook meant it was hard to predict future trading levels.