Slowing UK economy appears good news for discount retailer B&M
Brits seeking out bargains has helped drive B&M customer numbers up every month since June, as the group plans to roll out 30 more stores across the UK to up keep demand.
For the year, the budget chain, which sells homewares and food, gained revenues of £4.9bn up from £4.6bn, as the group improved its offering in its existing stores and shoppers turned to the brand for cheap prices.
Adjusted EBITDA was down from £573m compared to £619m as the group faced inflationary headwinds and adjusted to normal trade post-pandemic.
During the year the brand also had 21 new store openings offset by 15 closures and relocations, which were due to external factors – B&M said it wants to open around 30 new stores during FY24 – taking its portfolio to 730 sites.
“B&M has many years of profitable growth ahead, to be delivered through our four channels of growth (existing B&M UK stores, new B&M UK stores, France and Heron) and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders,” Alejandro Russo, B&M’s chief said.
He added: “We are actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value.”