1. Comment
September 29, 2020

B&M is a clear winner during Covid-19

By GlobalData Retail

Lockdown in the UK provided a suitable environment for B&M to thrive. The group expects adjusted EBITDA for its first half to reach £285m, exceeding expectations of £250m-£270m set out at the end of July, supported by rising average transaction values.

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B&M’s value proposition appeals amid economic uncertainty, while its large out-of-town stores (the vast majority of which remained open throughout lockdown) allow shoppers and staff to adhere to social-distancing guidelines. The value general merchandiser’s wide range across various product categories also served it well, and it was able to capitalise on strong demand for tinned and packaged food, as well as DIY & gardening products as consumers stayed home.

B&M achieved double-digit revenue growth for the six months to the end of September – UK sales rose 29.5% and like-for-like sales 23.0%. Strong UK like-for-like growth of 22.7% in Q1 slowed slightly in Q2 to 19.1% as non-essential retailers, such as home specialists, reopened stores. Heron Foods and Babou both achieved positive like-for-like sales growth. This performance is particularly impressive given that B&M does not operate a transactional website.

B&M is wisely reviewing its store portfolio. It opened nine new stores in the UK during the six-month period, but closed eight smaller and older stores. Store openings will pick up over the next six months, with plans to open between 40 and 45 stores during FY2020/21, despite the ongoing impact of Covid-19 on physical retail.

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Build resilience in the face of COVID-19 disruption

COVID-19 has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities. Are you interested in actionable insights on the business challenges induced by the pandemic? GlobalData's cross-sector report analyzes the significance of this major disruptive theme across industry verticals. It provides side-by-side research of alternative datasets to present you with unique quantitative analysis of the effects of COVID-19 and how these differ across sectors. Additionally, it offers qualitative analysis of each sector and analyzes COVID-19’s impact on leading companies. Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today.
by GlobalData
Enter your details here to receive your free Report.