Sales on sale store B&M soared in the run-as much as Christmas as shoppers clicked up its cheap food and revenues were bolstered by its purchase of grocery chain Heron Foods.
Group sales rose 23pc to £970m within the three several weeks to Dec 23, up from 20.5pc development in exactly the same period this past year, with Heron adding £80m to the peak line.
Sales at United kingdom stores open several year were up 3.9pc, which B&M stated underlined “continued robust performance in our grocery and FMCG ranges”. Nevertheless it marked a slowdown in the 7.2pc like-for-like growth it recorded within the same period this past year.
Though it doesn’t sell fresh foods, B&M’s selection of cut-cost branded staples, for example biscuits, crisps and cereals, pose yet another threat towards the “big four” of Tesco, Sainsbury’s, Morrisons and Asda, that are already struggling with competition from fast-growing German grocers Aldi and Lidl.
Retail analyst Bryan Roberts stated: “Worth noting that B&M highlights grocery like a driver of like-for-like growth. Media obsessed over Aldi & Lidl while overlooking the discomfort B&M, Home Bargains etc are inflicting on [the] big four”.
B&M opened up 19 United kingdom stores at that time, taking its total to 569. It bought Heron, that has 263 stores and sells mostly frozen along with other non-fresh foods, for £152m in August.
Chief executive Simon Arora, who co-founded the organization together with his brother Bobby, stated it “continues to visit from strength to strength”.
“Despite the demanding comparatives in the quite strong Christmas in 2016, our buying, logistics and retail teams achieved another outstanding performance this season by doing what we should do best, that is delivering great value for purchasers week-in, week-out,” he stated.
B&M’s shares were up 3.6pc to 412p at the begining of trade.