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Price
£5.82
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52 Week High-Low
£6.51—4.80
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Net Yield
7.2%
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Hist / Pros Per
14/15
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Equity Market Cap
£5,957

Similar to companies like Primark they seek out high levels of consumer footfall and try to inspire impulse purchasing decisions when customers browse store aisles. B&M concentrate their store footprints around the 20,000 square foot size which is equivalent to the size of a small supermarket. However, unlike traditional supermarkets, B&M offer little fresh food produce. Instead, inventory is geared towards offering branded long-life food and drink, household and personal care products and, a range of household general merchandise.

Key to B&M’s general merchandising approach is direct sourcing. Working directly with Far East manufacturers enables B&M to avoid intermediary mark-ups to the likes of exporters, importers and distributors in its supply chain. These savings have helped B&M offer a strong value price proposition to customers.

However, after years of benign inflation the recent inflationary surge, across raw materials and freight, may prove testing for B&M’s value perception if pricing must rise. A quandary ahead is whether B&M could mitigate the price rise impact if instead they see consumers down-trading from squeezed real incomes.

Managing your wealth

Managing your wealth

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.


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