B&M's competitive edge see's it through tough Christmas trading!
B&M has reported a “very good performance” across grocery during the Christmas trading period as its UK like-for-like sales Grow 6.4%.
Across the value retailers grocery business Heron Foods, B&M said in its third quarter trading update for the period to December 24, that its trading momentum continued with revenue up 22.5% year on year.
“B&M has performed well this festive period, as consumers turned to the discounter for both grocery and general merchandise purchases. Group revenue increased to £1,567m, up 12.3% on Q3 FY2021/22,” GlobalData retail analyst, Tash Tesseyman said.
She said that B&M’s like-for-like sales in the UK were “robust” up 6.4% in Q3 FY2022/23, “as the discounter benefited from consumers trading down in the lead-up to Christmas.”
“Despite UK total retail volumes expected to decline 6.2% in 2023, according to GlobalData, discounters will likely come out on top as low-price points entice consumers to switch away from supermarket chains like Tesco and Sainsbury’s for food and groceries.”
Tesseyman added that going into the 2022 Christmas period, “B&M was able to keep its stock in line with demand as its supply chain performed well.”
Looking forward into 2023, she said that stock availability will be key for B&M to “ensure consumers do not switch away to rivals such as Home Bargains and The Range, as shoppers search for low prices due to continued inflationary pressures.”
Speaking of the period, B&M chief executive Alex Russo commented: “Our strong momentum throughout the Golden Quarter across the businesses demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail execution.
“Despite the challenging macroeconomic environment, we will continue to work hard to help both existing and new customers manage the cost-of-living crisis. The business has exited the quarter well and will remain focused on disciplined execution.”