B&M unveils turnaround strategy amid weak UK sales

Core Insights - B&M has announced that its annual profits for 2025 will be lower due to a decline in UK sales and has introduced a turnaround plan focused on price reductions [1] - The "Back to B&M Basics" strategy aims to enhance the company's value proposition and return UK like-for-like (LFL) sales to sustainable growth [2] Financial Performance - B&M reported group revenue of £2.75 billion for the first half of fiscal 2026, marking a 4% increase from the previous year [2] - The UK unit generated £2.2 billion in revenue, with LFL sales increasing by 0.1% in the first half, driven by growth in general merchandise despite a decline in fast-moving consumer goods [2] - However, LFL sales in the UK fell by 1.1% in the second quarter, which was below company expectations [2] Turnaround Strategy - The turnaround plan includes cutting prices on key value items, rebooting "manager's specials promotions," slimming and refocusing product ranges, and improving on-shelf availability [1] - These strategic actions are expected to take up to 18 months to show results [1] Future Projections - B&M forecasts full-year adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) between £510 million and £560 million, representing a potential decline of up to 18% year-on-year [3] - The company anticipates that LFL sales will be the main driver of performance within the projected EBITDA range, with expectations of low-single-digit negative to positive growth in the second half of the year [4] Store Operations - B&M operates a total of 786 stores in the UK, along with 344 Heron Foods and B&M Express outlets, and 140 stores in France [4]