The closure of Wilko and B&M’s subsequent takeover of 51 of its stores will lead to significant further market share gains for B&M, with GlobalData’s September UK survey finding that consumers consistently named the discounter when asked where they would shop instead in the event of Wilko’s demise, according to GlobalData, a leading data and analytics company.
Oliver Maddison, Retail Analyst at GlobalData, comments: “Within Wilko’s core sectors, B&M consistently emerged as one of the most popular alternatives among Wilko shoppers. When Wilko shoppers were asked which retailer they would buy from in the event of Wilko closing down, B&M was in pole position for homewares, with 20.5% in the survey citing the retailer as an alternative, and it had strong representation in other sectors, with 13.7% and 10.1% naming it for DIY & gardening and health & beauty, respectively.”
The convenience of B&M’s focus on retail parks, in combination with its strong range of products and popular brands, has proved to be a key reason for its success. Wilko’s primarily high street-based store portfolio was not well suited to selling bulkier items, and its range could not compete with rivals like B&M and The Range, especially considering the supply issues it suffered with. This hurt its sales; of the 56.3% of respondents who had not purchased from Wilko in 2023, 52.6% cited inconvenience as a key factor in their decision to shop elsewhere, with a further 26.4% citing its limited range and availability.
Maddison adds: “Poundland’s fortunes in the fight over Wilko’s customer base will be worth watching following its pursuit of an aggressive expansion strategy of purchasing 71 Wilko locations, as it will have to significantly expand its range and improve its value for money credentials to compete with B&M for Wilko’s customer base. In terms of Wilko’s key sectors, Poundland only just placed in the top 10 for health & beauty in terms of where Wilko shoppers intend to shop and placed 14th and 15th for DIY & gardening and homewares, respectively.”
Maddison concludes: “While B&M is likely to be the key beneficiary from Wilko’s fall, particularly for homewares, it should be noted that homewares market leader Dunelm has also shown interest in former Wilko locations to aid its own high street expansion ambitions. This reflects a trend of mass market homewares retailers, namely Dunelm and IKEA, expanding their presence in town centres to increase their proximity to a wider range of consumers.”
* GlobalData’s September monthly survey of 2,000 UK nationally representative consumers
