B&M rapid expansion causes operational problems as history repeats itself for chairman Sir Terry Leahy

The former boss of Tesco, Sir Terry Leahy, has just seen history repeat itself as the discount chain he chairs admitted its rapid expansion had caused problems.

B&M boss Simon Arora said opening 47 discount stores in just 26 weeks had caused “operational issues”, leaving shelves empty and the warehouse unable to cope.

The problems worried investors as the share price dropped 4.69% to a six-month low of 304.6p, making it the biggest faller on the FTSE 250.

The chief executive insisted the problems have been resolved, but it is embarrassing for chairman Leahy, who led Tesco’s nationwide expansion which contributed to the supermarket’s recent woes.

Arora said: “For us to have opened 47 stores in six months is very different to the previous openings of 20 [in six months] and the simple consequence is you need more warehouse space and more lorries to keep them stocked.”