Following yesterday’s release of B&M’s figures for the 26 weeks ending 26 September 2026; Emily Scott, retail analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “B&M has shown strong results in the first half, fueled by solid sales in France. Group H1 FY2026/27 revenue rose 3.6% to £2.85bn despite a weak UK Q1 weighing on momentum (like-for-like (l-f-l) sales declined by 2.3%). There was a marked turnaround in the value player’s Q2 performance in the UK, with l-f-l sales growing 3.2%, and gross margin recovering 0.74ppts, the clearest sign yet that the domestic turnaround is gaining traction. B&M’s share price increased by over 15% in early-morning trading, suggesting investors see these results as evidence that B&M’s investment is taking hold. However, it is still too early to declare victory: H1 UK l-f-l growth was just 0.4%, and an extended garden season flattered Q2.
“Group adjusted profit before tax rose 16.6% to £121m in the first half, ahead of market forecasts, with l-f-l sales also up in France (5.9%) and at Heron Foods (2.9%). With early Golden Quarter trading positive across all three businesses and FY2026/27 adjusted profit before tax guided at £280m–£330m, B&M enters its most important trading period in better shape than a year ago. The challenge now is to prove that Q2 marked the start of a sustained recovery rather than a temporary bounce.
“Beneath the headline, general merchandise led the UK recovery, but FMCG appears to be on a positive trajectory after lagging in Q1 when B&M prioritised price cuts. UK FMCG l-f-l sales improved in Q2, finishing the quarter flat. Even so, FMCG remains the category to watch in an intensely competitive UK grocery market, and incoming Chief Financial Officer Atheeq Akbar, who starts in January 2027, brings valuable grocery experience to that challenge.
“Attention is now turning to Phase 2 of its Back to B&M Basics strategy, which moves on from pricing, availability and range to focus on the customer experience and the productivity of the UK estate. B&M is slowing UK expansion in FY2026/27 to spend more on refitting existing stores and trialling its new B&M 2.0 format. Early trading at the new B&M 2.0 concept store in Wigan, which has a more intuitive flow and a stronger focus on higher-margin general merchandise, has been encouraging. B&M should prioritise store refits over new UK openings, applying the insights from B&M 2.0, as an improved store experience will help convert browsers into customers. The new cleaner, easier-to-shop format should help renew interest among shoppers trading down as cost-of-living pressures persist.”
