From its headquarters and main distribution centre in Speke, stock market-listed B&M operates 569 B&M-branded outlets as well as 263 outlets under the Heron brand and 84 Jawoll stores in Germany. Tony McDonough reports

Liverpool-based value retail giant B&M saw revenues in the weeks up until Christmas soar 22.7% to almost £1bn, latest figures show.

While many UK retailers suffered wretched festive trading the B&M tills just keep ringing in the 13 weeks up until December 23.

From its headquarters and main distribution centre in Speke, stock market-listed B&M operates 569 B&M-branded outlets as well as 263 outlets under the Heron brand and 84 Jawoll stores in Germany.

Festive cheer

Sales at the UK B&M stores along during the pre-Christmas period surged 13% to £837.3m, contributing to the overall revenue figure of £969.8m. It also opened 19 new B&M outlets during the period.

Chief executive Simon Arora said: “B&M continues to go from strength to strength.

“Despite the demanding comparatives from the very strong Christmas in 2016, our buying, supply chain and retail teams achieved another outstanding performance this year by doing what we do best, which is delivering great value for customers week-in, week-out.

“With Heron also performing well and Jawoll having a solid quarter, I’m delighted with our progress.”

Rapid expansion

B&M employs hundreds of people in Speke as well as across its Merseyside store network is in the process of opening a new outlet in the Project Jennifer scheme in Great Homer Street, creating 60 jobs.

In early August it swooped to buy Northern  grocery chain, Heron, in a deal worth £152m and, also in the summer, it was rumoured that supermarket chain Asda, owned by US-based Walmart, was preparing a £4.4bn bid for B&M.

B&M began with a single store in Blackpool in 1976. In 2005 Manchester brothers Simon and Bobby Arora, who ran a successful wholesale business, bought the chain from Private Equity firm Phildrew Ventures.

At that time it was still based in Blackpool and its 20 stores generated annual sales of £65m. The Arora’s later relocated the business to Speke  and now in 2016/17 annual revenues were up almost 20% to more than £2.4bn with pre-tax profits soaring to £190.1m.

Market flotation

In 2012 private equity house Clayton Dubilier & Rice (CD&R) bought a 60% stake in the business and three years ago it was floated on the stock exchange with a value of £2.7bn. The Arora family retains a 15% stake.

CD&R has sold its holding in the retailer in a series of tranches and on Friday sold its remaining 5% stake for £200m. In total the investor will have made £1.5bn out of the chain.