B&M Bargains: The next shop to disrupt the High Street?
Netto have been opening a crop of new shops with little fanfare, but the one to keep an eye on is B&M Bargains.
Simon Arora, the chief executive of B&M, has been saying that his company are "genuinely disruptive" to the retail industry and that they will be doubling in size in the UK. B&M floated on the stock market earlier this year and are valued at £2.7bn.
While Tesco, Sainsbury's, Morrisons and Asda have all been keeping an eye on each other, they collectively failed to noticed that B&M, Poundland, Aldi and Lidl have been stealing their customers through good prices and expansion.
B&M also happen to be chaired by former Tesco boss, Sir Terry Leahy, so you know they're not messing around. The company already has 400 outlets, but they're looking at getting to 850 stores in the next couple of years.
Arora said: "Half the UK does not have a B&M in convenient access. We will become a national retailer not a regional retailer." While they don't sell food, "you can find a toaster in B&M and it will be cheaper than a specialist shop."
B&M are looking at becoming something like Woolworths, filling the gap for those who want the kind of things you wouldn't buy with your groceries. B&M are also looking at grabbing the buildings left by Homebase who closed a quarter of their stores.
Sir Terry Leahy says: "The business is well-positioned as the leading limited assortment general merchandise discounter in a growth sector which offers scope for it to at least double in size in the UK alone over the next few years – and we are making good progress towards that objective."
"B&M has delivered good momentum in sales, profits and cash generation during the first half whilst at the same time pushing on with rapid store rollout and investing in new infrastructure and team capability to support this long-term growth."
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TOPICS: High Street News