Budget retailer B&M’s shares sink as UK sales growth fizzles

The Liverpool-based retailer said it generated £1.4 billion in revenues between October and December.

Anna Wise
Thursday 09 January 2025 11:17 GMT
B&M employs more than 35,000 people. (B&M/PA)
B&M employs more than 35,000 people. (B&M/PA)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Shares in B&M tumbled by more than a 10th on Thursday after the discount retailer revealed its UK sales dipped over the final quarter, as its boss insisted the business was “undistracted” by economic news.

The Liverpool-based retailer said it generated £1.4 billion in revenues between October and December in the UK.

This was 2.8% higher than the same period a year ago.

The business remains undistracted by the current economic headlines

Alex Russo, B&M's chief executive

However, when compared like-for-like, which strips out the impact of sales from new store openings, it marked a 2.8% decline.

But it said like-for-like sales were higher in December alone, with shoppers bagging a bargain in the run-up to Christmas on items including toys, seasonal confectionery and festive home ranges.

This momentum has continued into the first few days of January, with customers responding well to newly launched ranges, B&M reported.

Analysts for Peel Hunt said revenues came in below market expectations, “indicating that consumers went underground for most of October and November” before a more “encouraging” December.

The Christmas update was not enough to cheer investors and shares in the FTSE 100-listed company dropped about 13% on Thursday morning.

Alex Russo, B&M’s chief executive, said: “The business remains undistracted by the current economic headlines.

“Our operating model is well set up to give customers exceptional value when they need it most.

“Our strategy is clear – we are an everyday low-price discounter with a laser focus in keeping excellence in retail standards and our costs the lowest.”

Adam Vettese, market analyst at investment platform eToro, said: “B&M seems to have served investors cold turkey this morning with shares sinking 10% following their Christmas trading update.

“The company continues to open new stores which on the face of it seems positive, but this initial boost of a new unit could be papering over the cracks of problems elsewhere.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in