Welcome to the new Woolies...
Budget store B&M is winning the retail war
BBut Professor Sparks says the expansion plans of disdiscount chains, added to the huge n umb e r s of existing properties – PouPoundland has 900 stores – meanmeans it’s very much about the susurvival of the fittest.
“TheThere is a bit of over- playinging of theth discount market at the minute,” insists Professor Sparks.
“Most companies have been very ambitious and some, like Poundland, have begun to lose their way slightly.
“It’s going to be a question of whether this pace can be sustained.
“Those that have a clear position and win in the consumer’s mind will probably meet their ambitions. WhatWh is the secret of B&M’s success? Ali Kirker takes a wander... THETH Arora brothers, who own B&M, haveha made billions out of bargains – andan it’s not hard to see why. WanderingW around the giant Dundee store,store it’s hard to resist stuff you’d never thoughtthou about before. Look! A Tigi hair-smoothinghaircream that’s going to turnturn me into a total babe for £6.99 (it didn’t).didn
“But it will be at a cost of the others in the market.”
One of the driving forces behind the rise and rise of B& M is Sir Terry Leahy.
Appointed as chairman in 2012, he’s the former boss of Tesco, and was at the helm of Britain’s biggest retailer during its glory years when it seemed every community wanted to be a “Tesco town”.
“He will have brought clarity of thought from his experience over a long period of time,” said Professor Sparks.
“And clearly there is some confidence in the City as a consequence. He knows how a business has to be managed and operated.”
Just like Tesco used to be welcomed with open arms, having a B&M to hand is viewed as