Discount retailer B&M issued its second profit warning in three months due to the need to reduce prices to clear excess stock. The company initiated a “Back to Basics” strategy last October to enhance pricing competitiveness and streamline its product offerings across various categories.
In a recent trading update, B&M reported a 0.6% decline in same-store sales in the UK for the crucial three-month period ending on December 27, which includes the Christmas season. As a result, the company adjusted its full-year profit forecast to a range of £440 million to £475 million, a significant decrease from the previous guidance of £470 million to £520 million.
Tjeerd Jegen, the CEO appointed last year, stated that as part of the “Back to B&M Basics” initiative, the company is making strategic investments to clear discontinued product lines. Despite short-term financial impacts, these actions are aimed at strengthening B&M in the long run.
In other news, Waterstones managed to offset rising labor costs and reported a modest increase in annual profits. The retailer, with 316 stores and seven new openings in the past year, recorded profits of £49.7 million compared to £45.6 million in the previous year. Effective cost control measures and margin improvement strategies helped mitigate the impact of increased payroll expenses.
Experts predict that HMRC’s annual tax revenue could surpass £1 trillion for the first time due to factors like National Insurance Contribution hikes and fiscal adjustments. The tax authority is expected to receive a surge of submissions as individuals rush to meet the January 31 deadline for self-assessment tax returns.
Furthermore, the Black Sheep Brewery has been rescued in a £4.5 million deal, preserving 145 jobs. The acquisition by the Paramount Retail Group includes plans to merge Black Sheep with Saltaire Brewery to create the Great British Drinks Company, with additional investments of £2 million pledged.
Lastly, a new UK bank, rebranded as This Bank, has launched with competitive savings products offering higher interest rates than the market average. Customers can access various saving accounts with attractive rates, including an easy-access account at 3.82% and fixed-term options. Chase Bank is also offering a competitive rate of 4.5% for new customers, including a bonus rate for the first year.