B&M European Value Retail opened the 2026/27 financial year with 2% revenue growth in the first quarter, driven primarily by the excellent performance of its French subsidiary, while the UK market was affected by a weaker start to the garden and outdoor products season.
In the 13-week period ended June 27, the group posted revenue of £1,433 billion, up 2% on the same period a year earlier (up 1,7% at constant exchange rates).
In the UK, the B&M brand generated sales of £1,135 billion, up 0,3%. Comparable store sales, however, fell 2,3%, penalized by a less favorable spring season than expected in 2025, when exceptionally warm and dry weather had fueled a strong increase in gardening sales.
The company notes, however, that general merchandise categories returned to growth in May and June, while seasonal product inventories returned to what is considered normal levels thanks to disciplined inventory management and promotions.
The "Back to B&M Basics" plan, aimed at boosting FMCG sales, is also continuing. The project involves a product range rationalization that will affect 75% of UK stores by the end of July.
The French division remains the main driver of the group's growth. Revenue increased 14,6% (+12,3% at constant exchange rates), reaching £156 million, while same-store sales rose 5,3%, a significant improvement compared to the 1,7% increase recorded in the final quarter of the previous year.
According to the group, growth in France was driven by good commercial execution, effective merchandising, and the opening of new stores, factors that increased store traffic.
Heron Foods also closed the quarter with positive results. Revenue grew 2,8% to £142 million, and same-store sales increased 2,6%, boosted by Easter sales, stock clearance activities, and product line revisions.
On the profitability front, B&M reports that general merchandise margins in the UK continue to improve compared to last year, while those in consumer goods remain under pressure due to pricing investments in a highly competitive environment.
CEO Tjeerd Jegen reiterated his confidence in the recovery plan, stressing that improving non-food segments and controlling costs are the foundation for gradually rebuilding the group's profitability.
Finally, the company announced that Atheeq Akbar will assume the role of CFO and Executive Director from February 2027, bringing his experience at Asda, Morrisons, and Tesco to the group. Meanwhile, Peter Waterhouse will continue as interim CFO to ensure a smooth transition.
