BM European Value Retail Reports Mixed Results as UK Sales Decline Offset by French Growth

British discount retailer B&M European Value Retail has witnessed contrasting performance across its markets, with UK sales declining while French operations showed resilience in the latest trading period.

The retailer reported a 1.8 per cent drop in like-for-like sales at its UK stores during the 12 weeks to 22 March, primarily due to weakness in fast-moving consumer goods. Despite this downturn, the company’s general merchandise categories, including garden products, toys, paint, and stationery, demonstrated positive growth in both value and volume terms.

Total group revenues climbed 3.7 per cent to £5.6 billion for the year ending March, supported by new store openings in the UK and a 3.2 per cent like-for-like sales increase in the French division. The company now expects to report adjusted profits above the midpoint of its £605 million to £625 million guidance range.

The announcement comes amid significant leadership changes, with Chief Executive Alex Russo set to retire. The succession process is reportedly progressing, though no replacement has been named. Operating costs in the UK rose by approximately 6 per cent, with the company partially offsetting increased wage rates through productivity improvements.

B&M’s expansion strategy remains active, with 45 new stores opened in the UK during the past year. The company plans to maintain this pace of growth in the coming year, despite challenging market conditions. The retailer currently operates 764 B&M shops and 338 Heron Foods stores in Britain, alongside 129 locations in France.

Market analysts have expressed mixed views on the company’s outlook, with Peel Hunt suggesting the incoming chief executive will face challenges but emphasising the fundamental strength of the business model. The company’s shares have experienced significant pressure, declining 27 per cent over six months and 41 per cent year-on-year, reflecting broader challenges in the UK discount retail sector.