B&M reports first online revenues, following launch of ecommerce trial to Grow'
B&M has today reported £3m in first-half online revenues, following the launch of a trial home delivery service in the summer.
B&M launched its home delivery trial in June, and today shoppers can buy products from toys and Christmas decorations to homewares, DIY products, electricals and pet accessories on its website.
The retailer also has Android and iOS mobile apps that shopper can use to customise their in-store shopping experience, scan product barcodes in-store for price information and share products with friends and family via social channels.
The discount retailer reported £3m in revenue due to online activities in the 26 weeks to September 24, although as yet this accounts for only about 0.1% of the £2.31bn it reported in revenues over the same period – up 1.8% from £2.26bn last year. Some £2.29bn (+2%) of its half-year revenues came from stores, and £17m (-29%) from wholesale. It trades primarily in the UK (-0.9% to £1.89bn), but also has a growing operation in France (+18.2% to £184m).
Pre-tax profits came in at £201m, down 16.7% from £241m a year earlier.
Sales in the first six weeks of the Christmas quarter of B&M’s financial year have grown by 2.5% on a like-for-like basis, that strips out the effect of store – and business – openings and closures. Full-year earnings before interest, tax and one-off costs (EBITDA) are expected to come in at between £550m and £600m.
The Liverpool-based business says it is well-placed to serve new and existing customers at a time of inflation, falling real earnings and rising interest rates. It is working towards a long-term target of 950 UK stores – 35% more than it currently has.
Alex Russo, B&M chief executive, says: “Sales momentum is good as we enter a difficult period for the economy and consumers. Our value-based approach is winning with existing and new customers, and we will do our very best to help them weather the cost-of-living crisis. We are well positioned as we trade through the Golden Quarter and our strategy remains unchanged – a relentless focus on price and product.”