UK discounter B&M well stocked for peak trading

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LONDON (Businesshala) – British discount retailer B&M with good stock availability during the Christmas trading season has deliberately taken delivery of imported generic goods earlier than usual, it said on Thursday.

FILE PHOTO: Sales signs are displayed in front of a shop in London, Britain December 27, 2018. Businesshala/Henry Nichols

The country’s retailers are grappling with delays in international supply chains, compounded by labor shortages in Britain’s transport and warehousing network.

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But B&M, which sells everything from food to home goods, gardening and DIY products, said the supply chain across the conglomerate remains strong.

“We have decisively responded to supply chain challenges by leveraging our strong supplier relationships and improved in-store execution,” said CEO Simon Arora.

“As a result, we are heading into an absolutely golden quarter,” he said, referring to the peak trading period.

Before Thursday’s update, B&M shares were up more than 29% this year.

However, shares were down 6.6% on Thursday as of 0836 GMT, after the company reported an 8.9% year-over-year decline in core B&M UK trading in the first six weeks of its third quarter, marking an “extremely high”. it shows. The sale was driven by unusually early Christmas trading in the same period last year.

The group, whose full name is B&M European Value Retail, said revenue for the six months to September 25 rose 1.2% to 2.27 billion pounds ($3.1 billion), with similar sales down 5% from B&M UK .

First-half group adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were £282.2 million, down 4.6% in the six months to September 25.

B&M is paying an interim dividend of 5 pence per share, up 16.3%.

“Like the entire retail sector, the group faces several potential cost headwinds and inflationary pressures in 2022, but considers itself well positioned to navigate these challenges,” the company said. said.

($1 = 0.7389 pounds)

Reporting by James Davey; Editing by Kate Holton and David Goodman

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