Discount retailer B&M faced its second profit warning in three months due to the necessity of reducing prices to clear excess inventory. The company initiated a “Back to Basics” strategy in October to enhance its pricing structure and streamline operations by trimming its product range across various categories.
During the crucial three-month period ending on December 27, B&M reported a 0.6% decline in sales at UK stores open for at least a year, including the Christmas season. The company revised its full-year profit forecast to a range of £440 million to £475 million, a notable decrease from the previous guidance of £470 million to £520 million. This adjustment follows an accounting oversight last October, which resulted in a £7 million error in overseas freight costs.
Newly appointed CEO, Tjeerd Jegen, mentioned that as part of the “Back to B&M Basics” initiative, they are investing in clearing discontinued product lines, impacting short-term financial performance but aiming for long-term growth.
In other news, HMRC plans to introduce a points-based system to replace automatic fines for late submission of self-assessment tax returns. Under this system, individuals will accrue points for late submissions, leading to fines once a certain threshold is reached. Additionally, the Making Tax Digital system will require more frequent reporting from taxpayers starting in April 2026.
Waterstones managed to offset rising labor costs by implementing margin improvement strategies and effective cost control measures, resulting in a slight increase in annual profits. The retailer’s revenue rose from £528.3 million to £565.6 million, with a net profit of £49.7 million, up from £45.6 million the previous year.
Moving forward, the tax system in the UK is set to undergo changes to support the struggling pub sector, including potential relief measures for pubs facing competition from supermarkets. Additionally, the Black Sheep Brewery has been acquired in a £4.5 million deal, safeguarding 145 jobs and forming a new entity called the Great British Drinks Company.
Lastly, a new bank, This Bank, has launched with competitive savings products, including an easy-access account offering a rate higher than the industry average. The bank also offers fixed saving accounts with attractive rates for various terms, aiming to attract customers seeking better returns on their savings.
