B&M, a UK discount variety store chain, has attributed its 2026 difficulties to its own missteps, particularly overwhelming customers with excessive choice. Chief Executive Tjeerd Jegen stated that the company's pricing was uncompetitive, promotions lacked sharpness, and the product range was too vast, confusing shoppers.
Speaking to The Times, Jegen explained: "Our pricing wasn't great, promotions weren't sharp enough, and our range was too overwhelming for customers." The retailer, which operates 787 stores in the UK and 137 in France, has seen its shares nearly halve since the start of the COVID-19 pandemic six years ago.
Turnaround Plan Underway
In response, B&M is cutting 20% to 25% of its product range as part of a turnaround strategy aimed at simplifying stores and enhancing value perception. Jegen expects these changes to become apparent over the next two years, adding that B&M remains well-positioned to attract value-seeking shoppers.
Broader Discount Sector Challenges
B&M is not alone in facing headwinds. Primark has also encountered difficulties following rapid expansion. However, retail experts believe the discount boom is far from over. Analyst Richard Hyman commented: "The discount boom isn't over."
Competition is intensifying from online low-cost platforms like Temu, Shein, and Joybuy, as well as resale sites such as Vinted and Depop in fashion. GlobalData retail analyst Sofie Willmott noted that mainstream retailers like Tesco, Sainsbury's, and M&S have strengthened their value credentials through loyalty pricing and affordable quality, making traditional discounters less compelling.
Willmott added that shoppers now prioritize overall value for money rather than just low prices, shifting the competitive landscape.
