Discount retailer B&M has issued its second profit warning in three months due to cutting prices to clear excess stock. The company, whose shares have dropped by half since May, introduced a “Back to Basics” strategy in October to enhance pricing and streamline operations by reducing product variety.
In a recent trading update, B&M reported a 0.6% decline in same-store sales in the UK for the crucial three months ending on December 27, which includes the Christmas period. The company adjusted its full-year profit outlook to £440-475 million, down from the previous guidance of £470-520 million, representing a significant decrease compared to the previous year’s £620 million profit.
The CEO, Tjeerd Jegen, mentioned that the company is making strategic investments to clear discontinued items as part of the “Back to B&M Basics” initiative. These investments aim to strengthen the company in the long term but may impact short-term financial performance.
Additionally, Waterstones reported a slight increase in annual profits despite rising labor costs. The retailer’s profits rose to £49.7 million, up from £45.6 million, with a turnover increase from £528.3 million to £565.6 million. Waterstones attributed the profit growth to margin-improvement strategies and effective cost management amid legislative payroll hikes.
Moreover, the launch of a new UK bank, named This Bank, offers competitive savings products such as a 3.82% easy-access account and various fixed-term savings options. The bank’s offerings are positioned favorably compared to industry averages, providing customers with attractive rates for their savings.
In another industry development, the founder of Wetherspoons expressed concerns about the tax disparity between pubs and supermarkets, highlighting the ongoing challenges faced by pubs in competing with discounted prices offered by grocery stores.
Furthermore, the Black Sheep Brewery, maker of the popular Black Sheep beer, has been acquired in a £4.5 million deal, securing 145 jobs. The acquisition by the Paramount Retail Group aims to merge Black Sheep Brewery with Saltaire Brewery to form the Great British Drinks Company, promising further investments in the business.
Lastly, the Warm Home Discount scheme, offering a £150 electricity bill rebate, is available to eligible households in the UK. Qualifying criteria include receiving Pension Credit or means-tested benefits, with automatic enrollment for eligible residents in England and Wales.
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