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January 7, 2021

B&M continues to thrive amid Covid-19

By GlobalData Retail

B&M has cemented its position as a clear winner during Covid-19 with another impressive set of results. Its stores remained open during the November lockdown in England, allowing it to absorb ongoing high demand for categories such as DIY and pet care and capture seasonal spend during the golden quarter.

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While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
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  • How might the Chinese government react?
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by GlobalData
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Group revenue rose 22.5% to £1,398.5m, driven by a strong performance in the UK where sales rose 26.6% to £1,211.8m. The retailer proved less resilient in France, with sales declining 1.4% due to four weeks of lockdown restrictions. The group now expects adjusted EBITDA for the full year to be in the range of £540m-£570m, lower than guidance given at the beginning of December, which it attributes to the voluntary payment of business rates.

Despite the ongoing impact of Covid-19 on physical retail, B&M opened 16 net new stores in the UK during the quarter, bringing its total to 673 with plans to open additional 18 stores during its Q4. The fact that it achieved like-for-like growth of 21.1% in Q3 indicates that its existing stores continue to appeal to shoppers. Its large out of town locations play to its advantage as they enable shoppers and staff to adhere to social distancing guidelines.

The outlook for B&M is positive with its stores once again remaining open during the third national lockdown while many of its competitors such as homewares specialists are forced to close. Its value proposition will also continue to appeal to shoppers amid ongoing economic uncertainty surrounding Covid-19.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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