B&M wins shoppers back as turnaround strategy starts to pay off in time for Golden Quarter
Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, comments on Burberry’s full-year results: “A return to UK like-for-like sales growth suggests B&M’s Back to Basics strategy is paying off. The swing from a 2.3% decline in the first quarter to 3.2% growth in the second is particularly encouraging, showing that sharper prices, better product availability and a more focused range are giving shoppers a reason to return.
“With consumers hunting harder than ever for value, discount retailers should be thriving. But rising operating costs, aggressive supermarket pricing and fierce competition are putting the traditional discount model under pressure. Simply being cheap is no longer enough. The most price-conscious shoppers expect the right products, at the right price, and will hunt around to get it.
“The timing couldn't be better as we enter the crucial Golden Quarter. After a tumultuous year, consumers aren't giving up on Christmas, but they're determined to make their money go further. B&M's mix of affordable gifting, decorations and everyday essentials puts it in a strong position to benefit, with early festive trading already showing encouraging momentum.
“The challenge now is turning stronger sales into sustained profitability. Beyond Christmas, making existing stores work harder, rather than simply opening more of them, will be critical to maintaining that recovery. In a crowded discount market, B&M needs to give shoppers a reason to keep coming back.”