Discount retailer B&M faced its second profit warning in three months due to reducing prices on leftover stock. The company initiated a “Back to Basics” strategy to enhance pricing and streamline operations by cutting product variety across categories.
In a recent trading update, B&M reported a 0.6% decline in like-for-like UK store sales for the crucial three months ending December 27, encompassing the Christmas period. The company revised its full-year profit forecast to £440-475 million, down from the previous £470-520 million guidance.
CEO Tjeerd Jegen highlighted the focus on clearing discontinued lines and making long-term investments despite short-term financial impacts. The firm also faced challenges from an accounting error in overseas freight costs, affecting its financial performance.
Meanwhile, Waterstones managed to boost annual profits, offsetting increased worker-related expenses. The retailer’s profit rose to £49.7 million from £45.6 million the previous year, with a turnover increase from £528.3 million to £565.6 million. The company attributed its success to margin improvement strategies and effective cost control.
The UK tax authority, HMRC, is expected to surpass £1 trillion in annual tax revenue soon, driven by factors like National Insurance Contributions increases and wage inflation effects. Experts anticipate a significant rise in tax receipts, with January 31 being a significant deadline for self-assessment tax returns.
In other news, a viral post revealed McDonald’s hash brown prices nearing £2 in some outlets, sparking consumer backlash. Additionally, a new UK bank, This Bank, launched with competitive savings products, offering higher interest rates than average options.
Wetherspoons’ founder expressed concerns over the tax disparity between pubs and supermarkets, as the government plans relief measures for the pub sector. Lastly, the Black Sheep Brewery was saved in a £4.5 million deal, securing 145 jobs and forming the Great British Drinks Company through a merger with Saltaire Brewery.
