Following today’s release of B&M Q3 figures for FY2019/20, Hannah Richards, Retail Analyst at GlobalData, a leading data and analytics company, comments: ‘‘B&M has delivered another set of promising results, with total group revenue rising 9.3% (on a constant currency basis) to reach £1,190.9m, bolstered by strong UK revenue growth with sales reaching £957.4m. Despite its home department continuing to outperform, disappointing sales across toys & seasonal confectionery meant that UK lfl sales were dampened and new stores were almost solely responsible for top line growth. Margin remained a priority for B&M, with the discounter choosing to refrain from participating in any early or unusual discounting amidst a quarter of prolific discounting in the retail market. With H1 lfl UK sales growth of 3.7%, B&M is reliant on a successful Q4 prop up H2 and compensate for a weaker than anticipated third quarter.
“Despite only obtaining marginal lfl growth, B&M has been buoyed by record level peak season sales, and its outlook remains positive as the retailer has shown its resilience amidst a challenging retail backdrop. Following the completion of its £120m distribution centre, full operational roll-out is due this quarter which will be essential in supporting future growth, with B&M opening 12 new stores in Q3, and planning to operate a total of 51 gross new stores by the end of FY2019/20.
“In addition to B&M UK’s revenue growth, its value convenience store chain Heron Foods also delivered pleasing results, with its revenue growing 6.2% to 95.6m. As with the B&M UK business, Heron Foods is also continuing to expand its store estate, with five net new stores opened in Q3 FY2019/20, taking its total up to 295 stores. Jawoll’s sales fell 1.5% on a constant currency basis which continues to negatively impact the group’s share price which fell 9% in this morning. No further clarity has been provided on the future of its German business Jawoll, which remains under strategic review.”