B&M to appoint new boss in ‘coming weeks’ as UK sales slip

Retailer B&M said it expects to announce its next boss “in the coming weeks” as it pointed to weaker sales across its UK stores.

However, the value chain saw shares tick higher after it told shareholders that earnings are set to be in the top half of previous guidance.

Shares rose to the highest level for almost two months but are still 40% lower over the past year following slow trading.

In February, Alex Russo said he would step down as chief executive as the company also downgraded its profit guidance for the second time this year.

On Tuesday, the London-listed firm said it is “making progress” on its succession plans and will announce its next boss “in the coming weeks”.

It came as the company reported that group revenues for the 52 weeks to March 29 are set to have grown by 3.7%, supported by new store openings and growth in France.

B&M’s UK arm however saw a 3.1% drop in like-for-like sales over the year, with a 1.8% decline in the latest quarter.

Demand for garden products, toys, paint and stationery grew in recent months, but sales of food were weaker.

Over the year, the company grew its UK store estate with 45 net openings and said it plans to open a similar number over the new financial year.

It added that earnings for the past year are set “to be above the midpoint” of its £605 million to £625 million guidance, after efforts to control its operating costs.

AJ Bell investment director Russ Mould said: “Value retail chain B&M has singularly failed to take advantage of what should have been supportive trading conditions in an environment where shoppers are still having to watch every penny.

“Today’s update helps extend a recent relief rally in the shares as the company narrows the guidance given in a recent profit warning.

“However, a new CEO and a clear direction for the business are needed before it can really get back on track, with current boss Alex Russo having fallen on his sword in the wake of the poor performance.”

Shares in the firm were up 1.8% at 304.5p on Tuesday.