Bargain kings heading south for expansion

BuDgET retailer B&M has outlined ambitious expansion plans after sales and profits soared last year.

The retailer built by billionaire brothers Simon and Bobby Arora, is opening a 1m sq ft factory in Bedford as it plots its assault on regions like Kent and Essex.

B&M said it plans to open a store a week over the next few years, with the majority of these in the South East. It currently has 576 stores but wants 950 across the uK.

The chain, which has a massive presence in the north, sells well-known brands like Kellogg’s, Coca- Cola and Heinz at a discount. It also sells a wide range of budget home and garden products.

B&M chief executive Simon Arora said it wanted to replicate Aldi and Lidl’s success in the non-food sector: ‘We want to be to homeware, DIY, toys and stationery what Aldi and Lidl have been to the grocery sector,’ he said. Arora, 48, said that shoppers in the south east were more likely to splash out on a £100 patio set compared to a cheap tube of toothpaste or box of cornflakes.

‘our stores in the South East are actually more profitable on average than the rest of the country,’ he said

Arora said B&M has been buying stores up from struggling retailers like Homebase, Mothercare and Marks & Spencer. He said he was also keen on snapping up some sites left by Sainsbury’s and Asda if the pair get the green light on their £14.1bn merger.

Its expansion plans come as revenues soared to just shy of £3bn last year, an increase of 22.4pc. Profits at the group increased 23.6pc to £226.1m.

The business was built by Arora and his brother Bobby, 46, who is trading director.

The two brothers, and younger sibling Robin, 33, are now worth £2.3bn.