B & M sales and profits decrease as low -income consumers rise

Sales in the B&M stores in the United Kingdom decreased by 3.1 % in 12 months until the end of March, while profits decreased by 13.2 % to 431 million pounds.Photo: Mourin McLean/Shutterstock

Low -wage consumers were blamed by one of the largest retailers in Britain in a segment of its sales and profits.

B&M, who issued a profit warning in February, said consumers were more cautious about their spending over the past year.

She added that her sales have decreased due to “real wage growth”, especially between “low -income consumer groups” that previously received The cost of emergency to support living From the government, which ended in February 2024.

The retailer, who sells everything from cleaning products and pets to garden furniture and hot ponds, said that similar sales in more than 740 stores in the UK decreased by 3.1 % in 12 months until the end of March.

The group’s profit fell 13.2 % to 431 million pounds due to a decrease in interest costs as well as the “UK’s retail environment”.

The shares in the company decreased by up to 7 % during the morning trading on Wednesday after the results, as the company admitted that “its operating implementation may be better.”

The largest bakery chain in the United Kingdom, GregIn May, he said its sales of iced drinks and snacks They were highEven with consumer remaining cautious, while he was benefiting from the high income of consumers available, with the help of the increase in April at the minimum legal wage.

Average wages Through the economy It increased by 6.4 % in the year to April, according to the latest official salary statements data from National Statistics OfficeAt a time when inflation was 3.5 %.

Meanwhile, hotels and restaurant staff managed to secure an 8.5 % increase in average wages throughout the year to April, according to ONS, while retail workers were paid by 6.9 % during the same period.

recently Payment Awards Public Sector They were also higher than the ministers who previously said they could have its costs.

B & M-which is currently led by the financial manager, after the departure of the CEO, Alex Rousseau, this year and before the arrival of its new president in mid-June-he should beat new clients amid pressure on the financial affairs of consumers, according to Russians Mold, the director of investment in the AJ Bell broker.

Mawlid said: “The retail seller has blamed the difficult market conditions, yet his value -led business model should have flourished in a period that consumers were watching with their texts.”

“He should have crossed additional business of people who are trading from more expensive options, while they are also a preferred store for individuals with financial hardship they want deals.”

Among the fans of the deals known to shop in B&M, former Prime Minister Boris Johnson and his wife Carrie, who recently revealed the social media that took her new child To their “favorite store”.

Meanwhile, the retail merchant, which is Because of the disappearance of the Upper British streets In the coming weeks, I reported a 7 % increase in sales in travel stores at railway stations, airports and hospitals in 13 weeks until the end of May.

The company, which agreed to sell its stores in the 480 streets in March to the owner of Hobbycraft, Modella Capital, said in a deal worth £ 76 million, it expects to complete the sale at the end of June.

Smith said that the remaining travel work was on the right path to achieve its financial goals in the entire year, and said that it was “in a good position as we entered the summer peak trading period.”