Discount retailer B&M has stated that its 2025 annual profits will be lower after slump in UK sales, and announced a turnaround plan focused on cutting prices.

Described as a decisive move, the Back to B&M Basics turnaround strategy includes cutting prices on key value items.

The plan also includes rebooting its "manager’s specials promotions" offer, slimming and refocusing ranges, and enhancing on-shelf availability.

These actions may take up to 18 months to take effect.

B&M anticipates the plan will revive its value proposition and return UK like‑for‑like (LFL) sales to sustainable growth.

The company posted group revenue of £2.75bn for the first half of fiscal 2026, a 4% rise from the previous year. 

The UK unit recorded £2.2bn in revenue, with LFL sales increasing 0.1% in the first half as growth in general merchandise outweighed a fall in fast-moving consumer goods sales.

However, LFL sales in the UK dipped 1.1% in the second quarter, below company expectations.

B&M France posted a 19.4% growth in second-quarter revenue, with Heron Foods reporting revenue drop of 1.4%.

B&M now forecasts full-year adjusted earnings before interest, taxation, depreciatio and amortisation between £510m and £560m, down as much as 18% year‑on‑year.

“Given the visibility available on operating costs and trading margins, we expect B&M UK's LFL sales will be the principal driver of the outcome within this range, for which we assume a second-half UK LFL percentage growth rate of between low-single-digit negative and low-single-digit positive levels,” stated the company.

The group runs 786 B&M stores, 344 Heron Foods and B&M Express outlets in the UK, and 140 stores in France.