‘Limited real wage growth’ among lower paid UK consumers help send sales and profits falling at Liverpool value retail giant B&M. Tony McDonough reports
Liverpool value retail giant B&M has blamed falling sales and profits on “limited wage growth” among its customers.
B&M, which has its headquarters and main distribution hub in Speke in south Liverpool, has published its results for the 12 months to March 31, 2025. They show overall revenues up to £5.6bn from £5.4bn in the previous year.
However, sales in its UK B&M estate, which is now up to 777 stores, fell 3.1%. The company admitted its “operational execution could have been better” and that this would be addressed in current trading plans.
This will likely be top of the agenda for new incoming chief executive Tjeerd Jegen who takes over from current interim chief executive Mike Schmidt on June 16.
Mr Schmidt became interim CEO in February this year after Alex Russo stepped down from the role he took on in September 2022. His departure came as the retailer lowered its full-year profits forecast for the second time in a few weeks.
Pre-tax profits for the 12-month period fell from £488m last year to £431m. B&M said in its annual report: “FY25 saw a challenging UK retail trading environment.
“While a number of external factors – including a very subdued garden season, heightened consumer caution, limited real wage growth (especially for our core lower-income consumer groups) and the timing of Easter – undeniably contributed significantly to B&M UK’s 3.1% sales decline.”
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B&M saw a better performance in France where it now operates 135 stores under the B&M brand. Back in the UK the company also operates 343 outlets under the Heron Foods frozen food brand.
In the UK B&M has a long-term ambition to open 1,200 stores. In November 2024 it agreed a 10-year lease on a 674,265 sq ft logistics hub in Ellesmere Port that will support its high street expansion.
This £20m in a new import centre will manage inbound container flow and optimise the capacity of B&M’s five UK distribution centres. Its container volumes have grown by 40% in the past five years.