Value retailer B&M hails ‘highly relevant’ model as profits rise

Value retailer B&M has reported a sharp rise in full year profits as cashstrapped consumers continue to flock to the discount retailer.

The group – which has scores of outlets across Scotland including eight shops in Tayside and Fife – has posted a 25.4% increase in pre-tax profit to £229.3 million in the year to March 31, with revenue jumping 22.4% to £3 billion.

Soaring inflation caused by the collapse of the Brexit-hit pound has pushed up the price of everyday items for hard-pressed shoppers.

The economic conditions have hurt other retailers but allowed B&M to thrive.

“The B&M model is highly relevant for the current difficult economic environment, with its strong position in the value and convenience areas of retailing where physical stores are winning,” chief executive Simon Arora said.

“The business is well placed for continued profitable, long-term growth.

“In a retail sector beset by structural challenges B&M’S unique, disruptive model stands out as a success story.”

B&M also described first quarter trading as “pleasing”, with the group booking a 3.1% increase in like-for-like sales so far.

Last year B&M, which is chaired by former Tesco boss Sir Terry Leahy and mainly sells general merchandise, splashed out £152m to take over Heron Food Group, which also boosted the group’s numbers.

“B&M has delivered another set of strong results by doing what we do best, which is providing great value week-in, week-out on the things customers buy regularly for their homes and families,” Mr Arora added.

“B&M has delivered another set of strong results by doing what we do best. SIMON ARORA CHIEF EXECUTIVE, B&M