B&M Retail | Verdict Company Briefing
Report description
B&M Retail is a budget variety chain with a rapidly expanding portfolio of 297 stores. Its low prices on household goods, homewares and food items are resonating with consumers in the current austere climate, and greater acceptance of discounters by landlords and major brands is fuelling its growth.
- Find out how rapidly B&M has increased its space and sales since since 2003.
- Understand the retailer's history, proposition and target market.
B&M Retail is owned by the brothers Simon, Bobby and Robin Arora. They took it over in 2005 in the wake of a deterioration in trading under previous management. As of November 2012 venture capital buyers have reportedly shown an interest in either investing in or acquiring the company.
B&M Retail’s rivals in the budget retail sector are also pursuing aggressive expansion plans, and it is unlikely that the total demand for this kind of retail proposition will expand consistently at double digit percentages for more than a couple of years.
The economic context for the growth of B&M Retail is one where rents have been forced down by the collapse of a number of major retailers and consumers at the lower end of the socioeconomic range have seen their disposable incomes come under pressure from low wage rises and inflationary pressures.
- How have B&M's sales grown, and how does Verdict see this changing in the coming years?
- How much further can B&M grow in the next two years?
- What should B&M do to differentite itself from its discount competitors?
Table of contents
OVERVIEWIntroduction
Summary
Sales rocket by 32.4% as store portfolio expands;
New financing could boost growth further;
Pound shop rivals threaten more competition;
Lack of differentiation and future consumer revival could cause problems.
B&M RETAIL
Economic context favourable for now
Outlook
New funding likely to bring further wave of growth
Recent key events
Rumours of bid interest
Looks for partner for overseas expansion
Financials
Explosive sales growth
Current trading
Space
Plenty of opportunities for rapid growth
Market shares
APPENDIXVERDICT COMPANY BRIEFING
Financial information
Market size calculation
Sales density calculation
Further reading
Ask the analyst
Disclaimer
TABLES
Table: B&M Retail company information 2012
Table: B&M Retail proposition 2012
Table: B&M Retail UK key operating statistics 2008–13
Table: B&M Retail trading record 2003–13e
Table: B&M Retail UK store portfolio 2003-13e
FIGURES
Figure: B&M Retail fascia 2012
Figure: B&M Retail UK sales and growth to December 2008–13e
Figure: B&M Retail UK operating profit to December 2007–11
Figure: B&M Retail UK sales per sq ft to December 2006–13e
Figure: B&M Retail homewares market share 2008 to 2013e
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