Liverpool discount retail giant B&M reports a rise in sales but a £53m fall in pre-tax profits as it announces a £20m investment in a new imports centre in Ellesmere Port. Tony McDonough reports
B&M aims to takes its UK store estate to 1,200 outlets. Picture by Tony McDonough
Value retailer B&M says it is creating the capacity to grow to 1,200 UK stores over the next decade as it announces a £20m investment in a new imports centre.
Liverpool-based B&M currently operates 764 B&M stores in the UK. It also has more than 333 Heron frozen food stores in the UK and a further 130 B&M stores in France. It is averaging seven new store openings a month.
To create the extra capacity needed to eventually push the number of UK stores up to 1,200 the business will spend £20m on a new imports centre at Ellesmere Port in Cheshire.
It says this will open within the next 12 months to manage inbound container flow and optimise the capacity of B&M’s five distribution centres in the UK. B&M’s container volumes have grown by 40% in the past five years.
Chief executive Alex Russo explained: “Our new store opening programme is on track and performing exceptionally well. To futureproof this volume growth, I am pleased to announce that next year we will open a new imports centre in Ellesmere Port.
“This is the right productivity step to support both our short and long-term growth plans, including our target of not less than 1,200 B&M UK stores.”
Stock market listed B&M’s headquarters and main distribution centre is in Speke in south Liverpool. On Thursday it released its half year results for the 26 weeks to September 28.
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They show sales for the period of £2.64bn, up 3.9% on the same period last year. However, pre-tax profits were down by £53m to £169m. UK B&M sales were £2.12bn (up 3.7%), Heron up 17% to £276m and B&M France up 26.1% to £247m.
Mr Russo added: “Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase.
“We have made significant progress over the last three months in general merchandise, particularly in Home, with the range strengthened and prices lowered further to drive volume market share.”
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