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In a remarkable display of retail excellence, Home Bargains has shattered expectations by breaking through the £4 billion sales barrier, with pre-tax profits surging 35 per cent to £454.8 million last year. The architect of this success, Liverpool-born Tom Morris, recently drew attention by extracting a £1.2 billion dividend from the business.
The triumph of Home Bargains stands in stark contrast to its struggling competitors. Poundland’s owners have written down the chain’s value by €775 million, whilst B&M faces scrutiny after three consecutive quarters of negative like-for-like sales growth. The collapse of Wilko in 2023 further emphasises the challenging landscape of British discount retail.
Morris, aged 70, built his empire from humble beginnings as one of seven children born to a Liverpool shopkeeper. His inaugural store, opened in 1976, specialised in affordable toiletries. The business gained significant momentum following the 2008 financial crisis, capitalising on available retail space left by defunct chains like Woolworths.
Despite amassing a £6.7 billion fortune, Morris maintains a notably modest approach. He drives a Volkswagen Golf, operates without a secretary, and demonstrates strong community values through actions such as a £2.5 million donation to save Liverpool’s Zoe’s Place children’s hospice.
Home Bargains’ operational strategy centres on aggressive pricing and rapid response to market changes. The company’s extensive product range, from branded toiletries to house-brand items, poses a significant threat to traditional high street retailers. Their preference for retail park locations and property ownership has resulted in a £1.2 billion property portfolio with minimal debt.
The future of Britain’s discount retail sector appears uncertain, with potential consolidation on the horizon. However, Home Bargains continues to expand, with ambitious store opening plans. Morris’s recent £1.2 billion dividend has sparked speculation about succession planning, though sources close to the founder suggest he remains deeply committed to the day-to-day operations of his retail empire.
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