Wikipedia

B&M

(Redirected from B & M)
For other uses, see B&M (disambiguation).

B&M Retail Limited, trading as B&M, is a British multinational variety store chain founded in 1978 and based in Speke. It is listed on the London Stock Exchange, and is a constituent of the FTSE 100 Index.

B&M Retail Limited
B&M
Company typePublic
LSE: BME
FTSE 100 component
IndustryRetail
Founded14 March 1978; 46 years ago (1978-03-14)
FounderMalcolm Billington
Brian Mayman
HeadquartersSpeke, England[1]
Number of locations
703 (19 February 2022)
Area served
United Kingdom
France
Key people
Peter Bamford
(chairman)
Alex Russo
(Chief executive officer)
ProductsGrocery, variety
RevenueIncrease£4.983 billion (2023)[2]
Decrease£536 million (2023)[2]
Decrease£348 million (2023)[2]
OwnerB&M European Value Retail S.A.
Number of employees
38,000 (2024)[3]
DivisionsBMStores.co.uk
SubsidiariesHeron Foods
WebsiteRetail website Corporate website

B&M is part of the Luxembourg-based B&M European Value Retail S.A., which owns Heron Foods and operates the B&M (formerly Babou) stores in France.[4]

It has 703 stores in the United Kingdom and 104 stores in France.[5][6]

History

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The business was founded by Malcolm Billington and Brian Mayman: the first store opened in Cleveleys, England, in 1978.[7] It was originally named Billington & Mayman, based on the founders' names, but was soon shortened to "B&M".[8] The company was the subject of a management buyout, financed by Phildrew Investments, in October 1996.[9]

It was acquired by Simon and Bobby Arora from Phildrew Investments in December 2004.[10]

In September 2006, the business saw significant growth, by acquiring the GlynWebb chain of Do It Yourself (DIY) stores and converting them into the B&M Homestore format.[11] The company also acquired a number of former Kwik Save,[12][13] Woolworths,[14] and Au-Naturale stores.[15]

The business moved into a new office and modern 620,000 sq ft (58,000 m2) distribution centre based in Speke, Liverpool in 2010.[16] In May 2011, B&M also purchased a number of Focus DIY stores.[17]

In December 2012, Clayton, Dubilier & Rice, one of the world's leading private equity funds, acquired a significant stake in B&M, and Sir Terry Leahy and Vindi Banga joined the Board of Directors.[18]

In March 2014, the business acquired a majority stake in German discount retailer Jawoll and then opened a new 500,000 sq ft distribution centre in Speke, Liverpool.[16] In June 2014, the business was the subject of an initial public offering.[19] However, upon detailed analysis by the Columbia Business School, it was found the IPO of B&M was overhyped due to an already saturated market in the UK.[20]

In November 2014, the business opened its 400th store (in Stockport)[21] and claimed to serve in excess of three million customers every week.[22]

 
A B&M store in Wood Green shopping centre which replaced a Wilko store

During July 2017, the company completed the acquisition of the smaller frozen food store chain Heron Foods for £152 million.[23][24] In 2018 the company started a trial of converting Heron Food branches to B&M Express.[25]

As of 31 January 2018, B&M European Value Retail S.A. had issued 1,000,561,222 ordinary shares at the opening price of 10 pence.[26]

In October 2018, the company acquired French discount retailer Babou for €91.2 million,[27] and by the end of 2021, the Babou brand was replaced by B&M.[28]

On 4 February 2022, the company opened its 700th store at Border Retail Park in Wrexham.[29]

In September 2023, it was announced B&M had acquired 51 former Wilko stores from the administrator for £13 million.[30]

Controversy

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Fire safety

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In 2012, B&M pleaded guilty at Mansfield Magistrates Court to six fire safety offences under the Regulatory Reform (Fire Safety) Order 2005 following a visit from Fire Protection officers of the Nottinghamshire Fire and Rescue Service to their Mansfield store in October 2011. Officers had previously visited in June 2011 and found numerous breaches of the order, including blocked fire exits. However, the failings were found to have been repeated in the revisit and the firm was fined £32,984.17.[31]

Underage sale of knives

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In 2018, B&M was fined a record £480,000 by Barkingside Magistrates’ Court for selling knives to three children under the age of 18 in test purchases at stores in Redbridge and Barking. The fine was reduced from £720,000 as the business pleaded guilty.[32][33]

COVID-19 rates relief controversy

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In March 2020, as a result of the COVID-19 pandemic in the United Kingdom, Rishi Sunak, then Chancellor of the Exchequer, gave business rates relief and furlough payments to businesses in the hospitality and retail sectors.[34][35] B&M was among several businesses classified as 'essential retailers' and as a result was allowed to remain open when other 'non-essential businesses had to close.[36][37] In November 2020, B&M and other retailers were subject to a public outcry for having not handed back payments totalling £1.8 billion intended for propping up retailers prevented from trading due to restrictions, despite making record profits.[38] The retailer declared £296 million in profit and as a result issued a £250 million special dividend despite having received £38 million in business rates relief and £3.7 million in furlough payments.[38][39] Brothers Simon and Bobby Arora, the CEO and trading director respectively, received a combined total of £37 million of the special dividend due to their 15% shareholding which is said to be worth at least £750 million.[39][36] The firm agreed to pay £80 million in business rate relief it had saved, a move mirrored by major supermarkets including Tesco, Sainsbury's and Morrisons.[37]

Electrical Safety

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In July 2022, B&M was fined £1 million by the Health and Safety Executive after it was found to have failed in the appointment of a "suitably competent person" to plan and execute work connecting temporary generators at its warehouse in Liverpool. The failing resulted in an electrical explosion causing electrocution and bodily burns of an electrician working on the project.[40]

Domestic operations

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As of 2021, the company currently has 686 stores in the UK and a further 275 Heron Foods stores.[5]

Over the period 2016 to 2018, the company opened another 100 stores as it reached 600 stores in November 2018.[41]

In September 2020, the company announced that it planned to open about 45 stores, offering everything from tinned and frozen meals to wallpaper and bedding plants, which has become a lockdown phenomenon.[42]

Since September 2012, some stores have also been selling National Lottery goods.[43]

Financial performance

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The financial performance has been as follows:

Year ending Revenue
(£ million) 		Profit
Operating
(£ million) 		Pre-tax
(£ million) 		Retained
(£ million)
25 March 2023[2] 4,983.0 536.0 436.0 348.0
26 March 2022[44] 4,673.0 610.0 525.0 422.0
27 March 2021[45] 4,801.4 613.4 525.4 428.1
31 March 2020[46] 3,813.4 332.8 252.0 80.9
31 March 2019[47] 3,486.3 264.4 249.4 202.7
31 March 2018[48] 3,029.8 239.8 229.3 185.8
25 March 2017[49] 2,430.7 204.5 182.9 144.0
26 March 2016[50] 2,035.3 174.5 154.5 125.8
28 March 2015[51] 1,646.8 132.9 61.7 39.9
29 March 2014 (65-week period)[52] 1,509.1 123.5 123.4 115.9
31 December 2012[53] 935.2 88.1 88.3 66.3
31 December 2011[53] 712.6 52.0 51.7 38.0
31 December 2010[54] 538.3 35.4 35.2 25.3
31 December 2009[54] 426.6 34.0 33.8 24.5[55]

References

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  1. ^ Hipwell, Patrick Hosking. "Arora brothers clean up thanks to B&M float". The Times. Retrieved 13 June 2015.
  2. ^ a b c d "Annual Report 2023" (PDF). B&M. Retrieved 31 December 2023.
  3. ^ "B&M Careers - Home". B&M. Retrieved 11 February 2024.
  4. ^ "B&M European Value Retail SA, BME:LSE profile - FT.com". markets.ft.com. Retrieved 27 June 2024.
  5. ^ a b Armstrong, Ashley. "Early festive buying puts B&M ahead of the game". The Times. ISSN 0140-0460. Retrieved 12 November 2021.
  6. ^ "France: B&M discount store replaces Babou". www.discountretailconsulting.com.
  7. ^ "B&M Bargains – Started in Cleveleys!". Visit Cleveleys. Retrieved 26 May 2023.
  8. ^ Lockwood, Rebecca (13 May 2022). "The history of B&M from Blackpool store to bargain goods giant". LancsLive. Retrieved 5 April 2023.
  9. ^ "Phildrew takes on B&M Bargains for £13m". E. G. Radius. 18 October 1996. Retrieved 25 June 2023.
  10. ^ "Sunday Times Rich List 2016: Sale bargain brother billionaires rank fourth in North West". Messenger. 22 April 2016. Retrieved 16 November 2016.
  11. ^ Barry, Chris (5 September 2006). "GlynWebb Changes Hands Again". Manchester Evening News. Retrieved 29 December 2010.
  12. ^ Sengun, Tunc (15 October 2007). "B&M acquires Kwik-save stores". talkingretail.com. Retrieved 22 June 2014.
  13. ^ Staff writer (15 October 2007). "B&M Bargains Buys Ex-Kwik Save Stores". Talking Retail. Archived from the original on 21 August 2010. Retrieved 29 December 2010.
  14. ^ Sengun, Tunc. "B&M acquires Woolworth stores". retail-week.com. Retrieved 22 June 2014.
  15. ^ Sengun, Tunc. "B&M Acquires Au Naturale stores". retatail-week.com. Retrieved 22 June 2014.
  16. ^ a b "Liverpool discount retailer B&M Bargains to create 200 jobs with new 500,000sq ft warehouse in Speke". Liverpool Echo. 10 October 2012. Retrieved 16 November 2016.
  17. ^ Sengun, Tunc. "B&M acquires Focus stores". retail-week.com. Retrieved 22 June 2014.
  18. ^ Sengun, Tunc. "Clayton Dubilier & Rice To Acquire Significant Stake in Leading UK Variety Retailer, B&M Retail". Retrieved 20 June 2014.
  19. ^ Armstrong, Ashley (12 June 2014). "B&M Bargains boosts London's listing market". The Telegraph. Retrieved 12 January 2017.
  20. ^ Wang, Sisy (10 October 2014). Graham and Doddsville (PDF) (Fall of 2014 ed.). Washington: Columbia Business School (GSB). pp. 22–23. Retrieved 24 October 2016.
  21. ^ Ruddick, Graham (18 November 2014). "Why B&M could be the next big thing in British retailing". The Telegraph. Retrieved 10 September 2016.
  22. ^ "About B&M Stores". B&M Stores. Retrieved 25 August 2017.
  23. ^ Armstrong, Ashley (2 August 2017). "B&M Bargains moves into convenience retailing with £152m swoop on Heron Foods". The Telegraph. ISSN 0307-1235. Retrieved 5 January 2018.
  24. ^ "Family-run Heron Foods taken over by B&M in £152m deal". BBC News. BBC. 2 August 2017. Retrieved 3 August 2017.
  25. ^ "B&M converts Heron Foods branches to 'B&M Express'". The Grocer. 3 September 2018.
  26. ^ B&M European Value Retail S.A. (31 January 2018). "Total Voting Rights" (PDF). Announcement for Release. Archived from the original (PDF) on 21 January 2021. Retrieved 21 January 2021.
  27. ^ "B&M enters France with Babou acquisition". Retail Gazette. 23 October 2018. Retrieved 12 November 2021.
  28. ^ "Discount : petits prix, offre élargie... B&M à la conquête du marché après le rachat des Babou". leparisien.fr (in French). 19 December 2021. Retrieved 19 December 2021.
  29. ^ "Take a SNEAK PEEK inside Wrexham's new B&M store before it opens tomorrow". The Leader. 3 February 2022.
  30. ^ "B&M acquires 51 stores from collapsed Wilko". Daily Business. 5 September 2023. Retrieved 5 September 2023.
  31. ^ Hook, Richard (31 May 2012). "Notts fire safety prosecution serves as warning to..." FIRE. Shoreham-by-Sea: Fire Knowledge Ltd. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  32. ^ Owoseje, Toyin (26 September 2018). "B&M Bargains fined £480,000 for repeatedly selling knives to east London children". The Independent. Northcliffe House, London: Independent Digital News & Media Ltd. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  33. ^ "B&M fined for illegal knife sales to east London teens". BBC News. Broadcasting House, London: British Broadcasting Corporation. 21 September 2018. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  34. ^ Chapman, Ben (24 March 2020). "What support is the government offering to get through the coronavirus pandemic?". The Independent. Northcliffe House, London: Independent Digital News & Media Ltd. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  35. ^ Jahshan, Elias (18 March 2020). "Chancellor extends one-year business rates holiday for all retailers". Retail Gazette. Marylebone. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  36. ^ a b Partridge, Joanna (12 November 2020). "Lockdown sales boost at B&M prompts £250m special dividend". The Guardian. Kings Place, London. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  37. ^ a b Chapman, Ben (7 January 2021). "B&M Bargains boss pays himself £30m after bumper sales during lockdown". The Independent. Northcliffe House, London: Independent Digital News & Media Ltd. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  38. ^ a b Wood, Zoe; Kollewe, Julia (3 December 2020). "£1.8bn-plus in Covid rates relief to be handed back as B&M joins list". The Guardian. Kings Place, London. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  39. ^ a b Pratley, Nils (12 November 2020). "Treasury messed up over B&M's Covid rates freebie". The Guardian. Kings Place, London. Archived from the original on 7 January 2021. Retrieved 7 January 2021.
  40. ^ Warburton, Nick (26 July 2022). "Budget retailer B&M hit with £1m fine over electrocution". IOSH Magazine. Wigston: Redactive Media Group. Archived from the original on 13 April 2024. Retrieved 13 April 2024.
  41. ^ "B&M eyeing Sainsbury's and Asda stores". Evening Standard. 13 November 2018. Retrieved 14 January 2019.
  42. ^ "B&M steps up expansion after lockdown sales boom". The Guardian. 29 September 2020. Retrieved 10 October 2020.
  43. ^ Sengun, Tunc. "B&M sells National Lottery goods". halfdiscount.co.uk. Archived from the original on 7 July 2014. Retrieved 22 June 2014.
  44. ^ "Annual Results 2022" (PDF). B&M. Retrieved 11 February 2024.
  45. ^ "Annual Results 2021" (PDF). B&M. Retrieved 14 February 2022.
  46. ^ "Annual Report 2020" (PDF). B&M. Retrieved 24 February 2021.
  47. ^ "Annual Report 2019". B&M. Retrieved 29 February 2020.
  48. ^ "Annual Report 2018". B&M. Retrieved 15 March 2019.
  49. ^ "B&M European Value Retail S.A. – Annual Report and Accounts 2017". bandmretail-ar2017.html.investis.com. Retrieved 1 March 2018.
  50. ^ "Preliminary Results 2016" (PDF). B&M. Retrieved 16 April 2017.
  51. ^ "Annual Report 2015" (PDF). B&M. Retrieved 16 April 2017.
  52. ^ "B&M Retail – Companies House". Companies House. 26 March 2016. Retrieved 12 January 2017.
  53. ^ a b Sengun, Tunc. "B&M's Financial performance 31/12/2012" (PDF). bandmretail.com. Retrieved 23 June 2014.
  54. ^ a b Staff writer (29 May 2010). "B&M Confirms Meteoric Rise as Pre-Tax Profits Hit All-Time High". The Grocer. Retrieved 29 December 2010.
  55. ^ Bennett, Julia (21 May 2010). "B&M Staff Anger over 'Obscene' Profit". Blackpool Gazette. Retrieved 29 December 2010.
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