Discount retailer B&M’s UK sales dampened by rainy weather
B&M European Value Retail said it generated more than £1 billion in the UK between April and June.
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Your support makes all the difference.Budget supermarket B&M has said wet weather helped dampen sales in recent months while the retailer continues to target shoppers who are seeing their incomes squeezed.
B&M European Value Retail said it generated more than £1 billion in the UK between April and June.
But like-for-like sales – which strips out the impact of shopping at newly opened stores – dipped by 3.5% compared with the same period last year.
The company said this reflects the fact that sales jumped strongly in the previous year, and that cold and wet weather in April and May will have affected shopping habits.
We continue to offer our customers exceptional value at a time when household incomes are under pressure
Across the group, which includes its French stores and frozen food chain Heron Foods, and incorporates the impact of new store openings, sales rose by 2.4% to £1.3 billion for the quarter.
B&M opened 19 stores during the quarter, which it said were already performing better than it had expected.
The retailer, which sells a range of household and DIY products, food and clothing, has 755 shops across the UK, as well as 335 Heron Foods and B&M Express stores.
It has previously said it is targeting at least 1,200 stores in the country over time, up from its previous target of 950.
Alex Russo, B&M’s chief executive, said: “We continue to offer our customers exceptional value at a time when household incomes are under pressure.”
However, Clive Black, an equity analyst for Shore Capital, questioned whether B&M’s recent sales momentum has “been more challenging than it wants to admit”, particularly set against discount rivals like Home Bargains and Lidl.
He also suggested that the retailer could be at risk of falling behind against mainstream supermarket loyalty initiatives, notably Tesco’s Clubcard scheme.