Discount retailer B&M faced its second profit warning in three months due to the necessity of cutting prices to clear surplus stock. The company, which saw its share price drop by half since May last year, initiated a “Back to Basics” strategy in October to enhance pricing competitiveness. Additionally, B&M streamlined its product offerings across various categories to simplify operations and reduce expenses.
In a recent trading update, B&M reported a 0.6% decline in like-for-like sales in its UK stores for the crucial three-month period ending December 27, which includes the Christmas season. Despite this, the management remains optimistic about recent positive trends.
The company revised its full-year profit forecast to a range between £440 million and £475 million, down from the previous guidance of £470 million to £520 million. This adjustment reflects a significant decrease from the £620 million profit reported in the previous fiscal year. In addition to market pressures, an accounting error last October, failing to account for £7 million in overseas freight costs, also impacted B&M’s financial performance.
Tjeerd Jegen, the CEO appointed last year, highlighted the ongoing efforts to clear discontinued products and make strategic investments for long-term growth. These actions, while affecting short-term financial results, are aimed at enhancing the company’s overall strength.
In other news, HMRC is set to replace automatic fines with a points system for late self-assessment tax returns. Under the new system, individuals will receive penalties based on accumulated points for late submissions. The upcoming Making Tax Digital initiative, starting in April 2026, will require more frequent reporting and impose penalties for repeated missed deadlines.
Waterstones, a popular book chain, managed to boost annual profits despite rising labor costs by implementing margin improvement strategies and effective cost controls. The company’s positive performance comes amidst challenges from increased wage costs and employer contributions.
Overall, economic experts predict that HMRC’s tax revenue may surpass £1 trillion for the first time in the near future. The tax authority is expected to see a surge in collections as individuals rush to file their self-assessment tax returns before the January 31 deadline. Various factors, including changes in tax rates and frozen thresholds, contribute to the anticipated increase in tax receipts.
In the retail sector, McDonald’s customers expressed discontent over the rising price of a hash brown in some restaurants. A viral post revealed the steep cost of £1.99 for a single hash brown, sparking backlash among consumers. Meanwhile, a new UK bank, now rebranded as This Bank, launched today with competitive savings products offering attractive interest rates.
Pub giant Wetherspoons’ founder raised concerns about the tax disparity with supermarkets, emphasizing the ongoing challenges faced by pubs. As the Chancellor prepares to unveil relief measures for the sector, the industry continues to navigate competitive pressures from grocery retailers. Additionally, the Black Sheep Brewery has been saved through a multimillion-pound deal, securing jobs and paving the way for further investments in the brewing business.
