23rd Jan 2015 07:57
LONDON (Alliance News) - Discount retailer B&M European Value Retail SA Friday said sales in the third quarter grew at a faster pace than the year before, boosted by the acquisition of its German business Ja Woll, but the sales growth was slower than in the first half of the year due to more competitive market conditions.
The value retail chain, which listed in London last year, said it is confident of meeting full-year market expectations, after group sales in the 13 weeks to December 27 rose 28.8% to GBP527.9 million from the year before. The growth rate was stronger than the 26.4% growth it reported for the same quarter last year, but slower than the almost 30% sales growth in posted during the first half of the year.
UK business sales in the quarter rose almost 21% to GBP593,8 million, while like-for-like sales grew by 4.5%, albeit at a slower pace than last year and the 4.8% growth in saw in the first-half.
B&M said that whilst market conditions are competitive, particularly in the so-called fast moving consumer goods division, it is confident its store expansion plans will boost its market share in the UK and Germany. In the year to date, group sales are up 29.3% at GBP1.27 billion.
"The group's third quarter trading performance has been pleasing despite the competitive market. Our Christmas decoration and gifting ranges enjoyed a good rate of sell-through, and we believe we are becoming a destination store for these important seasonal categories. We expect to meet market expectations of revenue and profit growth in our maiden year as a quoted company,"said Chief Executive Simon Arora in a statement.
B&M currently trading from 417 stores in the UK, have opened 24 new stores in the last quarter.
"We expect to open at least 50 net new stores in the UK this financial year, and have a strong pipeline of at least 45 new stores across the UK for the following financial year," the company said.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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