Discount retailer B&M faced its second profit warning in three months due to the need to reduce prices on excess inventory. The company, which has seen a drop in share price since last year, initiated a “Back to Basics” strategy in October to enhance pricing competitiveness and streamline its product offerings across various categories.
In a recent trading update, B&M reported a 0.6% decline in like-for-like sales in the UK stores during the crucial three-month period ending December 27, encompassing the holiday season. Despite this, management highlighted an improvement in sales performance in the last month alone.
The company revised its full-year profit forecast to a range of £440 million to £475 million, down from the previous estimate of £470 million to £520 million, indicating a significant decrease from the previous year’s £620 million profit. Apart from market challenges, an accounting error in October, where an additional £7 million in overseas freight costs was not properly accounted for, also impacted the firm.
Tjeerd Jegen, the CEO appointed last year, stated that as they implement the “Back to B&M Basics” approach, they are identifying opportunities to clear discontinued products with long-term investments in mind, impacting short-term financial results.
Waterstones, a book retailer, managed to counter rising labor costs and posted a slight increase in annual profits. The chain, with 316 stores and recent expansions, reported profits of £49.7 million, up from £45.6 million the previous year, with turnover rising from £528.3 million to £565.6 million. The company credited margin improvement strategies and effective cost management for mitigating the impact of higher payroll expenses.
Experts predict that HMRC’s annual tax revenue could surpass £1 trillion soon, driven by factors such as increased National Insurance Contributions and wage inflation effects. The tax authority is expected to collect significant amounts as taxpayers rush to file self-assessment returns before the January 31 deadline.
In a bid to support struggling pubs facing challenges from supermarkets, the Chancellor is set to unveil relief measures worth around £300 million. This move aims to alleviate business rates pressures on pubs, with Tim Martin, chairman of Wetherspoon, highlighting the ongoing competition faced from grocery stores.
The Black Sheep Brewery, maker of Black Sheep beer, has been acquired in a £4.5 million deal, saving 145 jobs. The brewery, now part of the Great British Drinks Company under Paramount Retail Group, plans to invest an additional £2 million to enhance operations while maintaining the distinctiveness of the brand.
A new UK bank, This Bank, has launched with revamped savings products offering competitive rates. The bank offers various savings accounts, including an easy-access account at 3.82%, higher than the market average, and fixed-term options. Customers can deposit up to £500,000 with attractive interest rates.
McDonald’s customers expressed outrage over the soaring price of a hash brown, reaching nearly £2 in some outlets. The fast-food chain clarified that franchisees set prices independently, aiming to provide quality and value to customers.
The Warm Home Discount scheme offers rebates to eligible households, reducing electricity bills directly. Qualifying criteria include receiving Pension Credit or means-tested benefits, with automatic payments in England and Wales, while manual applications are necessary in Scotland. Northern Ireland does not have this scheme.