It’s great to read some positive results from a UK retailer, amongst the gloom we’ve been seeing recently. With so many announcing store closures, it’s good news to see B&M announcing plans to open a further 45 next year (adding to the 44 this year). I can’t help but think that the key to success in the current retail climate is a simple business model, doing the core basics brilliantly and focusing on what you’re good at. Primark is another clear example of a retailer doing this. Interesting though that Citi’s recent advice to investors is to buy shares in online retailers rather than their bricks and mortar counterparts and to choose European players above British companies. Perhaps they should take another look at the likes of B&M and Primark!
B&M has posted a 25 per cent growth in pre-tax profit for the year as chief executive Simon Arora commended the retailer’s “disruptive model” for standing out as a success story. In its preliminary results announcement today, B&M said sales were up 22 per cent to £2.97 billion in the 53 weeks to March 31, with like-for-like revenue growth up 4.7 per cent for the year. Group profit before tax increased by 25.4 per cent to £229.3 million during that time. Across the financial year, B&M opened 43 new stores and revealed plans to launch a further 45 for the current financial year.