B&M, one of Britain's largest discount retailers, has confirmed a major price reduction across its stores as part of a strategy to win back customers. The chain reported a 2.3% decline in like-for-like sales in the three months to June 27, which bosses attributed to a slow start to the gardening season.
Sales Drop and Recovery Signs
Chief executive Tjeerd Jegen said the results were expected and noted signs of recovery. Merchandise sales, including toys, homeware and seasonal items, returned to growth in May and June. The company's turnaround plan, dubbed "Back to B&M Basics", focuses on cutting prices to reinforce its value-for-money reputation.
"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 Basic," Jegen said.
Strong Performance Elsewhere
B&M's French arm posted a strong quarter, with sales jumping more than 14%. Its sister chain Heron Foods also saw a sales boost of 2.8%. Overall group revenue rose by 2% to £1.43 billion for the quarter. However, shares in the company sank by more than 6% in early trading.
B&M was founded in the 1970s and operates more than 700 stores across the UK, selling homewares, garden furniture, confectionery, toys, electricals, cosmetics and DIY products. Bosses remain confident that sales will rebound as autumn and winter ranges are released in the coming months.
