Discount retailer B&M faced its second profit warning in three months due to the necessity of lowering prices to clear excess stock. The company initiated a “Back to Basics” strategy to enhance pricing competitiveness and streamlined its product range across various categories to simplify operations and reduce expenses.
In a recent trading update, B&M reported a 0.6% decline in year-over-year UK store sales for the crucial three-month period ending December 27, which includes the Christmas season. The company revised its full-year profit outlook to a range of £440 million to £475 million, down from the previous guidance of £470 million to £520 million. This adjustment follows an accounting error in October that led to an additional £7 million in overseas freight costs.
Tjeerd Jegen, the CEO appointed last year, emphasized the company’s commitment to “Back to B&M Basics” and strategic investments in clearing discontinued product lines. While these investments impact short-term financial results, they are aimed at strengthening B&M’s long-term position.
In other news, Waterstones reported a slight profit increase, offsetting rising labor-related expenses. The retailer’s annual profits rose to £49.7 million from £45.6 million, with revenue climbing from £528.3 million to £565.6 million. Waterstones attributed its performance to margin improvement strategies and effective cost management amid escalating wage costs.
Furthermore, experts predict that HMRC’s annual tax revenue could surpass £1 trillion soon, driven by increased collections from various sources, including higher National Insurance Contributions and tax thresholds affecting more taxpayers. This projection coincides with the ongoing self-assessment tax return deadline at the end of January.
On a different note, McDonald’s customers expressed dismay over the escalating price of a hash brown in certain locations, reaching nearly £2. The fast-food chain clarified that pricing variations are determined by franchisees, ensuring a consistent focus on quality and value for customers.
Additionally, a new UK bank, formerly known as JN Bank UK, rebranded as This Bank, offering competitive savings products. This Bank provides various savings accounts, including an easy-access account with a 3.82% interest rate. The financial institution aims to attract customers with attractive rates and flexible deposit options.
Lastly, the founder of Wetherspoons highlighted the ongoing challenges faced by pubs, particularly in competing with supermarkets offering discounted prices. As the Chancellor prepares to unveil support measures for the pub sector, concerns persist about the tax disparity between pubs and supermarkets.
The acquisition of Black Sheep Brewery by the Paramount Retail Group safeguarded 145 jobs, signaling a £4.5 million investment in the brewery’s future. The merger with Saltaire Brewery forms the Great British Drinks Company, emphasizing the preservation of each brewery’s unique identity and independence.
Moreover, eligible households can benefit from the Warm Home Discount, receiving a £150 rebate directly on their electricity bills during the colder months. Qualification criteria include receiving Pension Credit or means-tested benefits, with automatic enrollment in England and Wales, while manual application is required in Scotland. There is no Warm Home Discount scheme in Northern Ireland.
