Discount retailer B&M pursues French expansion

B&M is pursuing expansion plans in France as the discount retailer seeks to build on rising sales across the Channel.

Since its launch in France six years ago, B&M’S sales in the country have hit £514m after posting a 19.2pc jump in the 12 months to March. Its recent success will pave the way for new openings in France, the company said, building on its tally of 124 stores. A B&M spokesman said: “The management team understand the British way of doing things but, ultimately, they are French and they know what the French people want. And what the French want is not that different from what people around the world want, which is low prices.”

B&M’S first foray in France came in 2018 after it acquired discount chain Babou in a €91.2m (£78m) deal.

Many of Babou’s stores were situated in retail parks, similar to where B&M targeted openings in the UK. A senior industry source said the chain enjoyed a “first-mover advantage” in the French market thanks to its offer selling a wide range of goods.

They said: “The whole concept of cleaning goods and toiletries being alongside gardening, DIY and homeware, that combination doesn’t exist in France.”

Founded in 2004 by brothers Simon and Bobby Arora, Liverpool-based B&M has grown from a small Northern chain into a retail giant pulling in £4.4bn in annual sales from 741 stores in the UK and almost £5.5bn across its total business, which also includes the retailer Heron Foods.

However, its success during the cost of living crisis has also led to progress in Europe.

Jonathan De Mello, founder of industry consultancy JDM Retail, said: “Cost of living issues facing French consumers has led to them moving more toward discount-oriented shopping – akin to the consumer mindset that has been present in the UK and Germany for some time.”

Following B&M’S latest results, Alex Russo, the chief executive, said: “The business and team are well set up for the year ahead, our pipeline remains on track to open not less than 45 UK B&M stores in each of the next two financial years and our French and Heron businesses continue to demonstrate significant profitable growth potential.”

‘What the French want is not that different from what people around the world want – low prices’