Following today’s release of B&M’s figures for the 52 weeks ending 29th March 2025; Emily Scott, retail analyst at GlobalData, a leading data and analytics company, offers her view: “B&M has maintained headline growth through store expansion, though underlying performance presents a more nuanced picture. Group revenue reached £5.6bn, marking a 3.7% year-on-year increase, primarily driven by new store openings and a strong performance in France. UK like-for-like (LFL) sales declined by 2.4% in Q4, marking the fourth consecutive quarter of negative LFL performance, bringing the full-year LFL decline to 3.1%. This sustained weakness reflects deeper structural pressures within the UK business, particularly in core FMCG categories that should be anchoring footfall. Despite this, total UK sales grew by 3.8%, driven by a robust store rollout programme that added 45 new sites. B&M’s profit was muted, as even though underlying earnings were at the top end of its £605-£625m guidance, group adjusted EBITDA only increased 0.6% to £620m – with this not satisfying investors as its share price fell by over 5% this morning.
“The Group plans to maintain its current store opening pace with another 45 openings in FY2025/26, however, the continued reliance on expansion to offset declining LFL sales raises concern. Long-term growth will increasingly depend on B&M’s ability to re-ignite organic sales growth within its existing estate and enhance basket conversion rate across high-frequency categories. Notably, FMCG categories underperformed, contrasting with growth in general merchandise sectors such as garden and paint. B&M has struggled to keep pace with grocers, such as Tesco, who have aggressively invested in price and value perception during the cost-of-living crisis, leaving its FMCG proposition increasingly exposed and less competitive in attracting and retaining consumers. Reassessing pricing architecture in FMCG categories and introducing more targeted promotional strategies could help reinvigorate its core proposition. B&M could also benefit from introducing a price-led loyalty scheme, following the success of similar models for key grocers, such as Sainsbury’s Nectar Card, to reinforce value perception and drive repeat visits. Not having a loyalty scheme is likely to have contributed to shopper drift toward supermarkets that reward frequency and spend. The retailer is set to open a new UK import centre this summer, which should help it meet its ambitious growth plans and bolster its operational efficiency.
“B&M France continued to be the strongest performing fascia, with full-year revenue increasing by 7.8% driven by 11 new store openings, and LFL growth of 2.6%, however it is a small part of the business, accounting for just 10% of group sales. This contrasts with Heron Foods which saw a 0.6%% decline in revenue despite opening 14 gross new stores during the year. This suggests that while the Group’s discount model resonated well in continental Europe, the value-led Heron format may require reassessment, particularly in a challenging economic environment that should, in theory, favour value-oriented propositions.
“The upcoming CEO succession, following Alex Russo’s retirement, adds an element of uncertainty to the Group. The transition in leadership will be pivotal in shaping B&M’s strategic direction and addressing the challenges in its UK operations.”
