Discount retailer B&M faced its second profit warning in the last quarter due to price reductions to clear excess stock. The company, which saw its share price drop by half since May last year, initiated a “Back to Basics” strategy in October to streamline pricing and product offerings across various categories.
During the crucial three months leading up to December 27, B&M reported a 0.6% decline in year-on-year sales in UK stores, including the festive period. The company adjusted its full-year profit forecast to £440-475 million, down from the previous range of £470-520 million, signaling a significant decrease from the previous year’s £620 million profit. Additionally, an accounting error last October resulted in a £7 million oversight in overseas freight costs.
CEO Tjeerd Jegen mentioned that as B&M progresses with its “Back to B&M Basics” strategy, it is actively investing in clearing discontinued product lines, which may impact short-term financial performance but aims to strengthen the company in the long run.
In other news, the UK tax authority, HMRC, plans to replace automatic fines with a points-based system in the self-assessment tax process. This change will introduce a £200 penalty after accruing a set number of points for late tax return submissions. The transition to Making Tax Digital from April 2026 will require quarterly earnings reporting, with penalties for missing deadlines.
Waterstones, the book retailer, managed to increase annual profits despite rising employee-related costs. The company’s profit rose to £49.7 million, with a turnover increase to £565.6 million, attributing the growth to margin improvement strategies and cost control measures.
Furthermore, a new bank, This Bank, launched with competitive savings products offering higher interest rates than the market average. JN Bank UK underwent a rebranding and introduced various savings accounts, including fixed-term options.
Lastly, Wetherspoons’ founder Tim Martin highlighted ongoing challenges faced by pubs, including competition from supermarkets. As the government plans relief measures for the pub sector, concerns remain regarding the tax disparity between pubs and supermarkets.