Discount retailer B&M's UK sales slip as weak garden season offsets France growth
B&M's First-Quarter Performance and Market Dynamics
July 15 (Reuters) - Discount retailer B&M reported a 2.3% decline in first-quarter like-for-like sales in its core UK market, as an expected slow start to the garden and outdoor season weighed on trading, although strong growth in France helped lift group revenue slightly.
B&M's Position in the UK Discount Retail Sector
One of Britain's largest discount retailers, B&M has long been regarded as one of Britain's biggest beneficiaries when households come under pressure as shoppers trade down to discount chains.
Challenges for Chief Executive Tjeerd Jegen
However, the weak performance underscores the challenge facing Chief Executive Tjeerd Jegen as he pushes his "Back to B&M Basics" turnaround plan, aimed at rebuilding profitability at a retailer that has struggled to keep pace in Britain's fiercely competitive discount retail market and the growing appeal of supermarket loyalty schemes.
Financial Results and Revenue Breakdown
B&M, which sells products ranging from food and household essentials to toys and garden items, reported group revenue of £1.43 billion ($1.92 billion), up 2% year-on-year for the first quarter ended June 27.
B&M shares fell 4% to 195.7 pence in early trading.
Inventory and Merchandise Performance
Jegen, who cut down prices at the retailer to clear old inventory, said B&M's general merchandise categories returned to growth in May and June, with the garden and outdoor inventories ending the season at normal stock levels.
Margin Trends and Future Outlook
B&M also said its UK grocery margins remained under pressure as it cut prices to stay competitive, while general merchandise margins improved and are expected to keep rising as the retailer rolls out its autumn and winter ranges.
Growth in the France Business
Its France business recorded a 14.6% revenue growth to £156 million, with like-for-like sales accelerating to 5.3% from 1.7% in the fourth quarter of fiscal 2026, driven by higher footfall in its stores.
Additional Information
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(Reporting by Atharva Singh and Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Louise Heavens)
