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Budget retailer B&M Has released Profit warning For the year, attributed to slippery for recession UK Sales And rising operating costs.
The group recorded a drop of 1.1 percent in the same sales in the UK during its second quarter, which estimated that the underlying income of half -year would decrease by 28 percent to about £ 198 million.
The financial pressure came after a significant increase of 30 million pounds in pay costs in the first half to end on 27 September, including a packaging of 14 million pounds under the new extended manufacturer responsibility rules.
As a result, B&M It is now estimated that the underlying earnings of the entire year will fall between £ 510m and £ 560m, which shows a probable 18 percent decline compared to the previous year.
The company said it was taking “decisive action” to improve its spectacular performance, although it warned that these measures could take up to 18 months to implement.
B&M expressed confidence that these steps “B&M will restore the proposal and support the return to the permanent equal sales growth for the B&M UK.”
Turnaround measures include cutting prices of some of its major value items, bringing more flexible “manager special” promotion, focusing on the number of its range and cutting and improving the availability of its most popular products on shelves.
Recently appointed Chief Executive Tzard Jegen said: “Since becoming CEO In June, I have led the business through a comprehensive review of our customer proposal and operation.
“We have concluded that while the price proposal of B&M remains strong, our operational execution has been weak.
“This has affected our first half trading performance, and it is reflected in the entire year’s approach.”
He said: “We have already accelerated our price position, and we are moving fast to focus on our range, improving on-checked availability and bringing back enthusiasm to our store.
“We have to do more work now, but we are confident that these changes will restore the same sales growth over time.”
While the group stated that it has seen the improvement in uniform sales in the UK since the second quarter, it still hopes that trade will be affected in the last six months, with a low single-meal fall to a low single-solitary sales growth.
The B&M UK has 786 stores operating under the B&M brand, as well as 344 stores under Heron Foods and B&M Express brand, while France also has 140 stores.