B&M Faces Tough Trading as Profits Plunge Amid Lower Consumer Confidence

B&M European Value Retail has issued a warning over ongoing challenges facing British retailers, as the company reported a significant decline in profits. The discount chain disclosed that pre tax profits had dropped by 56 percent to seventy five million pounds in the six months to twenty seventh September. This sharp fall was attributed to sluggish sales in the United Kingdom and rising operational costs.

Appointed in June, chief executive Tjeerd Jegen emphasised a cautious outlook for the market, noting that consumer confidence is likely to remain subdued for an extended period. In response, B&M has intensified efforts to sharpen its retail proposition. The company has enacted a strategy centred on reducing prices and improving value, with a stated aim of positioning itself at least fifteen percent cheaper than major supermarket competitors. Price cuts have been implemented on around thirty five percent of key value items to date.

B& M’s portfolio ranges from electrical appliances to garden furniture and groceries. The retailer has encountered setbacks including management changes, accounting errors, and higher wage and tax bills. The recent discovery of an error in the company’s books prompted the departure of chief financial officer Mike Schmidt and the appointment of Helen Cowing as interim finance chief. A third party review by EY is underway, with results expected in January.

Despite these issues, B&M reported a four percent increase in group revenue to two point seven billion pounds and reaffirmed its full year profit outlook, projecting profits between four hundred seventy million and five hundred twenty million pounds. However, the share price has more than halved in value over the past year, and recent like for like sales in the third quarter have lagged expectations.

Rising UK costs, including a thirteen percent increase in adjusted operating expenses driven by new packaging taxes and higher national insurance, continue to impact margins. The company faces particular pressure from an additional twenty six million pound burden tied to increases in the minimum wage and national insurance contributions.

Jegen has opted not to comment on this month’s government budget, preferring to focus on internal improvements and restoring certainty for customers. The retailer’s position during the crucial pre Christmas trading period is uncertain, but B&M’s leadership maintains that price competitiveness and efficient operations remain their top priorities in rebuilding customer trust and stabilising future performance.