Discount retailer B&M has issued its second profit warning in three months, attributing the need to reduce prices to clear excess stock. The company’s stock value has dropped by half since May last year. In an effort to streamline operations and cut costs, B&M implemented a “Back to Basics” strategy last October, trimming its product range across various categories.
Despite a 0.6% decline in year-over-year sales for the crucial period ending December 27, which includes the holiday season, the company remains optimistic about recent sales trends. B&M adjusted its full-year profit forecast to a range of £440 million to £475 million, down from the earlier estimate of £470 million to £520 million, representing a significant decrease from the previous year’s £620 million profit. An accounting error in October, miscalculating an additional £7 million in overseas shipping costs, also impacted the company’s financial performance.
Tjeerd Jegen, the CEO appointed last year, emphasized the strategic importance of investing in discontinuing product lines to strengthen B&M in the long term, acknowledging the short-term impact on financial results.
In other news, HMRC plans to introduce a points-based system to replace automatic fines for late self-assessment tax returns. Under the new system, individuals will receive penalties after accumulating a certain number of points for late submissions. Starting in April 2026, the Making Tax Digital program will require reporting earnings quarterly, with penalties for repeated missed deadlines.
Waterstones reported a modest profit increase, attributing it to effective cost controls and margin improvement initiatives. The company managed to offset rising labor costs by implementing these measures. Additionally, the retailer opened seven new stores, contributing to its overall growth.
The ongoing debate over tax discrepancies between pubs and supermarkets continues, with Wetherspoons’ founder expressing concerns about the competitive challenges faced by pubs. The Chancellor is expected to unveil relief measures, including easing business rates, to support the struggling pub industry.
Black Sheep Brewery has been acquired in a £4.5 million deal, securing 145 jobs. The brewery will merge with Saltaire Brewery to form the Great British Drinks Company, with plans for further investment. The acquisition aims to maintain the distinctiveness and independence of each brewery’s brands.
Additionally, a new UK bank, This Bank, has launched with competitive savings products, offering higher interest rates than the market average. The bank provides various savings accounts, including fixed-term options, with attractive rates for customers.
