B&M has detailed its plans to open between 40 and 45 new stores across the UK following a recorded ‘strong growth’ in sales that has encouraged the retailer to raise its half-year profit guidance as a result. The chain now expects to post an adjusted EBITDA of £285 million for the six months to September 26th.
Meanwhile, as reported by The Retail Gazette, the group saw revenue rise by 25.3 per cent during the period, with its UK stores recording a revenue growth of 29.5 per cent. On a like for like basis, UK sales increased by 23 per cent.
Bucking the current trend of store closures across the UK by a number of the high street’s biggest names, contributing to data released today that store closures have risen 25 per cent on 2019, B&M has increased guidance on new store openings for the financial year, after experiencing a ‘pick up’ in leasing activity.
The retailer now expects to open between 40 and 45 stores in the UK, most of which are likely to launch during its fourth quarter. B&M largely operates in out of town shopping destinations, as opposed to the high street, where footfall has once again taken a dip following the Prime Minister’s recent advice on working from home measures in the face of a rise in coronavirus cases in the UK.
“Our group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations,” said B&M chief executive, Simon Arora.
“Our people have risen to the many challenges posed by the Covid-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience.”
B&M will publish its interim results on November 12.