B&M's Turnaround Struggle: Balancing Growth in Challenging Times

B&M reported a 2.3% drop in UK like-for-like sales due to a slow garden season start. Despite this, strong growth in France boosted group revenue slightly. CEO Tjeerd Jegen's 'Back to B&M Basics' plan aims to rebuild profitability amid tough UK discount retail competition and supermarket loyalty challenges.

Discount retail giant B&M has reported a 2.3% dip in first-quarter like-for-like sales within its core UK market. The unexpected slow beginning to the garden and outdoor season had a significant impact on trading. Nonetheless, the company experienced slight growth in group revenue, thanks to robust performance in France.

B&M's first-quarter revenue reached £1.43 billion, reflecting a 2% increase compared to the previous year. This comes as shares plummeted by 4% to 195.7 pence during early trading on the stock market. CEO Tjeerd Jegen is addressing these challenges with the "Back to B&M Basics" turnaround strategy, aiming to bolster profitability amid Britain's cutthroat discount retail sector.

In a bid to clear old inventory, Jegen reduced prices, leading to growth in general merchandise categories during May and June. Meanwhile, B&M highlighted that its UK grocery margins remained pressured by price cuts necessary for competitiveness, though general merchandise margins saw improvement. Notably, the France business reported a 14.6% revenue surge, attributed to rising store footfall.