Discount retailer B&M finds itself in uncharted territory


Arora brothers have taken B&M from brink of insolvency to the FTSE 100, but now discount retailer finds itself in uncharted territory

The Arora brothers have taken B&M from the brink of insolvency to the FTSE 100. 

But now the discount retailer finds itself in uncharted territory ahead of its full-year results on Tuesday. 

It will be the last results outing for chief executive Simon Arora, who is stepping down after 17 years at the helm. 

In January, the Arora family sold a 4 per cent stake in B&M to take their holding down to 7 per cent. 

Investors will be anxiously awaiting its plans to combat rising inflation as the cost of living crisis continues to bite. 

The company sells everything from food and toys to DIY supplies and gardening products. 

So worried are shareholders by the crisis that the shares have fallen a quarter over the last year. The Bank of England expects inflation to reach double digits by the autumn. It also means input costs within the retail industry could rise dramatically in coming months. 

Hargreaves Lansdown analyst Sophie Lund-Yates said: ‘B&M’s core customers are likely among the worst affected by inflation. Its lower prices are also not as competitive as they once were.’ 

But some investors think shoppers are likely to buy cheaper goods, which would be expected to benefit no-frills operators such as B&M. 

At the start of the year it upgraded its full-year profits guidance to £605m to £625m, up from analysts’ estimate of £578m. Analysts have forecast its sales to rake in £4.8billion for the year. 

B&M listed in 2014 and has 1,110 stores in the UK and France. 

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