B & M

B&M European Retail Value S.A. (also known as B&M Bargains and the larger B&M Homestore) is a UK variety retailer formed in 1978. It employs over 28,000 staff.[3] It is listed on the London Stock Exchange, and is a constituent of the FTSE 250 Index.

B&M European Retail Value S.A.
Société anonyme
Traded asLSE: BME
IndustryRetail
Founded14 March 1978 (1978-03-14)
FounderMalcolm Billington
HeadquartersLiverpool, United Kingdom (operational)[1]
Luxembourg (registered)
Number of locations
600 stores
Key people
Peter Bamford
(chairman)
Simon Arora
(Chief executive officer)
Paul McDonald
(chief financial officer)
ProductsGrocery, variety
Revenue£3,486.3 million (2019)[2]
£264.4 million (2019)[2]
£202.7 million (2019)[2]
Number of employees
28,000 (2019)[3]
DivisionsBMStores.co.uk
SubsidiariesHeron Foods
Websiteretail website corporate website

History
B&M, Omagh (2008)
B&M, Keighley (2010)

The business was founded by Malcolm Billington as Billington & Mayman and the first store opened in Cleveleys, Lancashire, United Kingdom in 1978 and was acquired by Simon and Bobby Arora from Phildrew Investments in December 2004.[4]

In September 2006, the business saw significant growth, by acquiring the GlynWebb chain of Do It Yourself (DIY) stores, and converting them into the B&M Homestore format.[5] The company also acquired a number of former Kwik Save,[6][7] Woolworths[8] and Au-Naturale stores.[9]

The business moved into a new office and modern 620,000sq ft distribution centre based in Speke, Liverpool in 2010, and new operations, logistics and finance directors joined the business in 2011.[10] In May 2011, B&M also purchased a number of Focus DIY stores.[11]

In December 2012, Clayton, Dubilier & Rice, one of the world's leading private equity funds, acquired a significant stake in B&M, and Sir Terry Leahy and Vindi Banga joined the Board of Directors.[12]

In March 2014, the business acquired a majority stake in German discount retailer Jawoll, and then opened a new 500,000 sq ft distribution centre in Speke, Liverpool.[10] In June 2014, the business was the subject of an initial public offering.[13] However, upon detailed analysis by the Columbia Business school, it was found the IPO of B&M was overhyped due to an already saturated market in the UK.[14]

In November 2014, the business opened its 400th store (in Stockport)[15] and claimed to serve in excess of three million customers every week.[16]

During July 2017, the company completed the acquisition of the smaller frozen food store chain Heron Foods for £152 million.[17][18]

Operations

B&M's strategy for acquiring products requires it to purchase directly from factories, or to seek overproduction and bulk buy opportunities, which means the retailer may make less profit by selling these items more cheaply than the competition, but makes up for it with the significant volumes being sold.[19]

Up to 30% of B&M's stock is sourced and purchased directly from China, though the retailer believes it can offset the higher import costs by increased sales volumes. Less than 10% of their products are sold for £1, giving them an advantage over single-priced competitors such as Poundland.[20]

Since September 2012, some stores have also been selling National Lottery goods.[21]

Corporate affairs

Store expansion

During the period 2008 to 2016, the retailer underwent a significant store expansion, increasing their outlets from 20 to over 500 throughout this period, with at least one new store opening every week as of 2016.[19] Over the next two years it opened another 100 stores as it reached 600 stores in November 2018.[22]

Financial performance

The financial performance has been as follows:

Year ending Revenue
(£ million)		 Profit
Operating
(£ million)		 Pre-tax
(£ million)		 Retained
(£ million)
31 March 2019[23] 3,486.3 264.4 249.4 202.7
31 March 2018[24] 3,029.8 239.8 229.3 185.8
25 March 2017[25] 2,430.7 204.5 182.9 144.0
26 March 2016[26] 2,035.3 174.5 154.5 125.8
28 March 2015[27] 1,646.8 132.9 61.7 39.9
29 March 2014 (65-week period)[28] 1,509.1 123.5 135.4
31 December 2012[29] 935.2 88.1 88.3 66.3
31 December 2011[29] 712.6 52.0 51.7 38.0
31 December 2010[30] 538.3 35.4 35.2 25.3
31 December 2009[30] 426.6 34.0 33.8 24.5[31]

References
  1. "Arora brothers clean up thanks to B&M float". The Times. Retrieved 13 June 2015.
  2. "Annual Report 2019" (PDF). B&M. Retrieved 29 February 2020.
  3. Sengun, Tunc. "B&M's website Careers page". Retrieved 15 March 2019.
  4. "Sunday Times Rich List 2016: Sale bargain brother billionaires rank fourth in North West". Messenger. Retrieved 16 November 2016.
  5. Barry, Chris (5 September 2006). "GlynWebb Changes Hands Again". Manchester Evening News. Retrieved 29 December 2010.
  6. Sengun, Tunc (15 October 2007). "B&M acquires Kwik-save stores". talkingretail.com. Retrieved 22 June 2014.
  7. Staff writer (15 October 2007). "B&M Bargains Buys Ex-Kwik Save Stores". Talking Retail. Archived from the original on 21 August 2010. Retrieved 29 December 2010.
  8. Sengun, Tunc. "B&M acquires Woolworth stores". retail-week.com. Retrieved 22 June 2014.
  9. Sengun, Tunc. "B&M Acquires Au Naturale stores". retatail-week.com. Retrieved 22 June 2014.
  10. "Liverpool discount retailer B&M Bargains to create 200 jobs with new 500,000sq ft warehouse in Speke". Liverpool Echo. 10 October 2012. Retrieved 16 November 2016.
  11. Sengun, Tunc. "B&M acquires Focus stores". retail-week.com. Retrieved 22 June 2014.
  12. Sengun, Tunc. "Clayton Dubilier & Rice To Acquire Significant Stake in Leading UK Variety Retailer, B&M Retail". Retrieved 20 June 2014.
  13. Armstrong, Ashley (12 June 2014). "B&M Bargains boosts London's listing market". The Telegraph. Retrieved 12 January 2017.
  14. Wang, Sisy (10 October 2014). Graham and Doddsville (PDF) (Fall of 2014 ed.). Washington: Columbia Business School (GSB). pp. 22–23. Retrieved 24 October 2016.
  15. Ruddick, Graham (18 November 2014). "Why B&M could be the next big thing in British retailing". The Telegraph. Retrieved 10 September 2016.
  16. "About B&M Stores". B&M Stores. Retrieved 25 August 2017.
  17. Armstrong, Ashley (2 August 2017). "B&M Bargains moves into convenience retailing with £152m swoop on Heron Foods". The Telegraph. ISSN 0307-1235. Retrieved 5 January 2018.
  18. "Family-run Heron Foods taken over by B&M in £152m deal". BBC News. BBC. 2 August 2017. Retrieved 3 August 2017.
  19. "Bargain store B&M has been quietly conquering Britain – and they want to be the new Woolies". Daily Mail. 4 August 2016. Retrieved 12 January 2017.
  20. Armstrong, Ashley (15 November 2016). "B&M bullish on store roll-outs despite sterling slump". The Telegraph. Retrieved 12 January 2017.
  21. Sengun, Tunc. "B&M sells National Lottery goods". halfdiscount.co.uk. Archived from the original on 7 July 2014. Retrieved 22 June 2014.
  22. "B&M eyeing Sainsbury's and Asda stores". Evening Standard. 13 November 2018. Retrieved 14 January 2019.
  23. "Annual Report 2019". B&M. Retrieved 29 February 2020.
  24. "Annual Report 2018". B&M. Retrieved 15 March 2019.
  25. "B&M European Value Retail S.A. – Annual Report and Accounts 2017". bandmretail-ar2017.html.investis.com. Retrieved 1 March 2018.
  26. "Preliminary Results 2016" (PDF). B&M. Retrieved 16 April 2017.
  27. "Annual Report 2015" (PDF). B&M. Retrieved 16 April 2017.
  28. "B&M Retail – Companies House". Companies House. 26 March 2016. Retrieved 12 January 2017.
  29. Sengun, Tunc. "B&M's Financial performance 31/12/2012" (PDF). bandmretail.com. Retrieved 23 June 2014.
  30. Staff writer (29 May 2010). "B&M Confirms Meteoric Rise as Pre-Tax Profits Hit All-Time High". The Grocer. Retrieved 29 December 2010.
  31. Bennett, Julia (21 May 2010). "B&M Staff Anger over 'Obscene' Profit". Blackpool Gazette. Retrieved 29 December 2010.

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