B&M reports strong trading but flags rise in costs

Value retailer B&M has said social distancing measures and wage premium payments have increased operating costs for its stores and distribution. In a trading update, chief executive Simon Arora said screened checkouts, distanced queuing and frequent cleaning regimes were some of the measures put in place, while also paying its employees a wage premium to recognise their contribution during the peak of the outbreak of Covid-19. All of its 49 UK stores have now reopened and like-for-like revenues were up 6.6% over the final quarter of its financial year. It also reported strong revenue growth in the first eight weeks of its new financial year, with like-for-like revenues up by 22.7%, driven by “exceptionally strong” demand from its customers for DIY and gardening. Arora added: “We have encountered exceptionally strong demand in our UK business over recent weeks. Customers have been coming to our stores much less frequently through the lockdown but their average spend has been much higher than normal. “We are not expecting this current level of trading to continue as normal shopping patterns resume. Clearly, there is also considerable uncertainty in relation to both the progression of Covid-19 and the economic outlook and it is therefore hard to predict future trading levels.” To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette