B&M is slashing prices in a major 'back to basics' drive to reverse a drop in sales and tempt shoppers back to the discount chain. The retailer, founded in 1978 and operating around 700 stores across the UK, reported that like-for-like sales in Britain fell by 2.3% in the three months to June 27, according to recent figures cited by The Express.
Sales Decline Blamed on Slow Gardening Season
The sales dip was partly attributed to a slow start to the gardening season, though hot spring weather initially boosted sales by nearly 11%. Chief executive Tjeerd Jegen said the results were expected and that there are signs of recovery. Merchandise sales — including toys, homeware, and seasonal items — were back in growth in May and June, he noted.
Jegen is focusing on a 'Back to B&M Basics' turnaround plan to drive up profits, which involves luring customers with price cuts and value-for-money deals. "As with Heron, which also delivered positive sales growth in the quarter, the smaller contribution of garden and outdoor categories to sales resulted in a like-for-like performance that is less impacted by seasonal factors, and more in keeping with the outcome we are working hard to achieve for B&M UK under Back to B&M Basics," Jegen said. He added that they "continued to deliver" on the plan to support a recovery in like-for-like sales of fast-moving consumer goods.
Positive Performance in Other Arms
Elsewhere in the business, B&M's French arm saw sales increase by more than 14%, and its sister chain Heron Foods, acquired in 2017, posted a sales boost of 2.8%. Overall group revenue rose by 2% to £1.43 billion for the quarter.
Despite these gains, shares in the company sank by more than 6% in early trading. The company expects sales to bounce back as the months advance and autumn and winter ranges are added, though it is too early to assess the impact of recent heatwaves.
