Discount retailer B&M has issued its second profit warning in three months due to the need to reduce prices to clear excess stock. The company implemented a “Back to Basics” strategy last October to enhance pricing competitiveness and streamline operations by cutting product variety in various categories.
B&M reported a 0.6% decline in like-for-like sales in the UK for the crucial three-month period ending December 27, which includes the Christmas season. The company adjusted its full-year profit forecast to £440 million to £475 million, down from the previous estimate of £470 million to £520 million, attributing the decrease to trading challenges and an accounting error related to overseas shipping costs.
CEO Tjeerd Jegen mentioned that the company is making strategic investments to eliminate discontinued products, aligning with their long-term vision despite short-term financial impacts. In other news, HMRC is planning to replace automatic fines with a points-based system for late submission of self-assessment tax returns.
Waterstones reported a modest profit rise despite increased labor costs, with annual profits reaching £49.7 million and a turnover of £565.6 million. The bookstore chain credited improved margins and cost controls for the positive financial performance amid rising operational expenses.
Furthermore, experts predict that HMRC’s annual tax collection could surpass £1 trillion for the first time soon, with current tax receipts indicating a potential increase in revenue. In another development, Black Sheep Brewery has been acquired in a £4.5 million deal, safeguarding 145 jobs and creating a new entity, the Great British Drinks Company.
Additionally, a new UK bank, This Bank, has launched with competitive savings products, and Wetherspoons’ founder highlighted the ongoing tax disparity with supermarkets as a key challenge for the pub industry. Lastly, McDonald’s customers expressed frustration over the increased price of a hash brown, underscoring the ongoing debate on pricing strategies within the fast-food sector.