B&M announces store reshuffle

Discount retailer B&M has announced that it is closing a number of stores over the next few weeks not for financial reasons but as part of a reshuffle of its store estate 

According to The Mirror, the closures are due to some stores moving to bigger sites or other external factors such as shopping centres closing and leases expiring.

For example, the company opened a new store in Glencairn Retail Park in Kilmarnock in response to customers calling for a bigger store. The old site at Queens Drive Retail Park will cease trading on 26 March.

The retailer is also moving its store in Castlegate Shopping Centre Stockton to move to a bigger site which will open soon. 

B&M’s site in Broadwalk Shopping Centre in Bristol is also closing as a result of the shopping centre being set for demolition.

Lastly it has been announced that its store in Maesglas Retail Park in Newport, Wales will be shutting down on 4 March.

The news comes as B&M raised its guidance for FY22 at the start of the year following a period of “very strong” trading in the run-up to Christmas. 

The retailer’s EBITDA is now expected to be in the range of £605m to £625m, ahead of analysts’ current estimate of £578m.

Although total UK revenue was down 2.5% year-on-year in its third quarter, with one-year like-for-like revenue down 6.2%, total revenue was up 14.0% on a two-year basis against the pre-pandemic levels of Q3 FY20.

In addition, in the period ended 25 December 2021, the retailer reported a “strong” performance across categories, with an “excellent” sell-through of seasonal ranges supporting its gross margin. 

Overall, the group reported year-on-year revenue growth of 0.1% over the quarter, and opened nine gross new UK stores in the period. It also plans to open a further 13 sites before the end of the FY22 period as it continues to expand.