Discount retail giant B&M is opening a giant new warehouse in Ellesmere Port as it looks to open even more stores.
The Liverpool-headquartered B&M European Value Retail reported revenues for the 26 weeks to September 27 of £2.6bn – up 3.7% on the previous year. Pre-tax profits fell from £222m to £169m –
Over the six months B&M opened 30 new B&M stores in the Ƶ, as well as four Heron Foods stores and five B&M stores in France.
Chief executive Alex Russo said the group now planned to open a new Ƶ imports centre by 2026 to help it manage the volume of goods it handles. B&M now handles 40% more containers than it did in 2019, showing how the company is growing.
Mr Russo said: “Our new store opening programme is on track and performing exceptionally well. To futureproof this volume growth, I am pleased to announce that next year we will open a new imports centre in Ellesmere Port. This facility will manage inbound container flow and optimise the capacity of our five existing B&M Ƶ distribution centres which are handling ever-growing volumes.
“This is the right productivity step to support both our short and long-term growth plans, including our target of not less than 1,200 B&M Ƶ stores."
The group’s chief financial officer Mike Schmidt said the investment would cost up to £20m “with operating cost ratios expected to be unchanged given the higher volumes being handled”. Mr Russo added that the group was also looking to extend its French distribution base.
Mr Russo said B&M was well-placed to win new customers as the cost of living crisis is still having an impact on consumers.
He said: “Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase. We have made significant progress over the last three months in general merchandise, particularly in Home, with the range strengthened and prices lowered further to drive volume market share.”
Mr Russo said the group was also hoping for a strong “golden quarter” – the three months leading up to Christmas.
He said: “Our long-term ambition for the Group remains unchanged, in supporting customers with exceptional value. As we trade through the Golden Quarter, we are encouraged by recent volume momentum and remain focussed on delivering profitable, cash-generating growth for all of our shareholders.”
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