B&M is a Christmas cracker as Brits rush for cheap food

Discount retailer B&M burnished its grocery credentials on Friday as a greater number of shoppers flocked to its stores in the run-up to Christmas to buy food.

Sales were up a whopping 22.7% to £969.8 million in the three months to December 23 for the group, lifted by B&M’s acquisition of frozen food chain Heron, which brought in £80 million.

The retailer, which sells everything from biscuits to microwaves, today said that same-store sales in the UK were up 3.9%. However, total sales edged down from a 7.2% rise in the same period last year.

B&M’s growth has been helped by its aggressive store expansion as well as Britons’ increased appetite for its cheap food.

Brothers Simon and Bobby Arora, who run 596 B&M stores, snapped up Heron Foods in August for £152 million in a push into convenience retail. The move seems to be paying off, with the discounter boasting “a robust performance” of groceries and toiletries.

Its strong results come after German discounters Aldi and Lidl had record-breaking sales over the festive period as more shoppers feel the squeeze on their wallets. Grocers Co-op and Morrisons also had a good performance, but Marks & Spencer was the laggard.