UK discount retailer B&M European Value Retail has reported a 4.4% increase in group revenues, reaching £1.405bn ($1.89bn), for the first quarter (Q1) of the financial year 2026.

This increase is attributed to growth from new space and a positive like-for-like (LFL) performance in both B&M UK and B&M France.

B&M UK experienced a 1.3% rise in LFL sales, bolstered by a strong performance in April 2025 in general merchandise outdoor ranges, aided by drier weather and the timing of Easter.

Despite a negative LFL for fast-moving consumer goods (FMCG) for the quarter, the health and beauty and cleaning categories saw a stronger performance in June, after enhancements in operational execution.

Categories such as garden, toy and DIY performed well, despite deflation in average selling prices (ASP). The ASP deflation has resulted in a lower year-on-year trading gross margin in some general merchandise categories.

However, B&M anticipates annualising these ASP effects from the second quarter, with new ranges expected to have a “higher bought-in trading gross margin”.

B&M UK opened 18 new stores in Q1, keeping on track for 45 new store openings throughout 2025.

B&M France also saw continued progress with a 1.1% LFL growth and a total revenue increase of 7.6%, opening four new stores in 2025 to July.

Heron Foods, part of the B&M group, continues to trade profitably after years of substantial growth, with ongoing efforts to strengthen revenue growth. The brand has seen two gross store openings up to July 2025.

The company's Ellesmere Port import centre has recently begun operations, and plans are underway to relocate the Middlewich distribution centre before the lease expires in August 2026.

B&M European Value Retail CEO Tjeerd Jegen stated: “My early days spent listening to and learning from our passionate colleagues and customers have underlined for me the strength of our value-focused model, which is more crucial than ever in the current challenging economic climate.

“While B&M UK’s like-for-like sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the Golden Quarter. Looking ahead, my focus is on building on our strong foundations, leveraging our market position, and continuing to deliver exceptional value for our customers.”