B&M's Turnaround Plan Faces Challenges Amidst UK Sales Decline

B&M reported a 2.3% decline in first-quarter UK sales as gardening season delays impacted results. While France showed growth, CEO Tjeerd Jegen's turnaround plan faces hurdles amid strong competition and loyalty schemes. Investors expect sustained sales and profit growth by fiscal 2028 to restore confidence.

Discount retailer B&M announced a 2.3% decline in first-quarter like-for-like sales in its UK market, with the slow start of the gardening season affecting trade. Despite this, growth in France contributed to an overall increase in group revenue.

The company's shares dropped 6.5%, reaching 190.8 pence. CEO Tjeerd Jegen faces significant challenges in executing his 'Back to B&M Basics' turnaround strategy amid competitive pressures, particularly from supermarket loyalty programs. Disappointing UK performance highlights ongoing struggles despite a strong market presence.

Efforts to revive B&M's fortunes saw general merchandise categories return to growth in May and June. However, sustained sales and profit improvements are needed by fiscal 2028 to regain investor trust. Revenue for the group increased by 2% to £1.43 billion, with France showing robust growth.