Retail Analysis

What comes next for B&M in the UK

10 June 2026

Find out about how the variety discounter performed in its FY26 trading period, and what the next steps of the turnaround strategy entail.

The variety discount channel in the UK has undergone significant turmoil in recent years. Despite being boosted by value-seeking behaviour from shoppers, difficulties have abounded; Wilko went into administration in 2023, Poundland was sold for £1 last year, and Poundstretcher is now on the brink of administration.

B&M has not been immune to these difficulties, with trading suffering significantly and profit warnings issued across 2025. However, the preliminary full year results for FY26 show green shoots of growth; like-for-like sales for were mostly flat at -0.1% (up from -3.1% in FY25), with Q4 seeing LFL growth of +0.1%. The positive trends indicates that the “Back to Basics” plan announced by new CEO Tjeerd Jegen is driving the success.

Launched in early October 2025 with three distinct phases to fix retail fundamentals, phase 1 is now mostly complete. The sharper pricing, better availability, improved promotions and clearance as well as SKU count reductions across FMCG have been hailed as the reason for slow but steady improvement in recent months.

Both FMCG and General Merchandise are showing signs of recovery; the former aided by a rationalisation of the assortment, with GM doing a lot of the heavy lifting in terms of margin and sales growth.

However, a turnaround of this scale takes time, and the full impact of the plan is still to be seen. Overall sales growth of 2.9% was supported by new space, with 41 gross store openings resulting in 22 net new stores across the estate. The sector overall has also seen significant headwinds, with higher costs and supply chain disruptions causing financial difficulties.

With phase two now underway, B&M will switch its attention to individual stores, aiming to balance the planned 25-35 new store openings with investment in the existing estate.

The more significant development is the new segmentation of stores, pointing to a further departure from a “one size fits all” approach, and focusing on specific shopper bases across stores.

There is an emphasis on improving individual store productivity and sales densities as well as the overall customer experience via more tailored ranging, use of space, and promotional execution.

Why this matters to you

B&M is stabilising operationally, but the real test is whether better execution and store segmentation can rebuild profitability rather than just stop the decline.

For retailers, this is a reminder that a value proposition alone is not enough to guarantee success. Pricing matters, but so do availability, promotional clarity, store execution and the overall shopping experience. In a market where consumers are highly value-conscious, retailers still need to get the basics right consistently.

For suppliers, the implications are more immediate as times of change present opportunities as well as threats.

Those already supplying to B&M will likely find themselves facing tougher conversations around their products and justifying their presence on the shelves amid continued rationalisation. Products will need to justify their role not just on price, but on rate of sale, margin contribution and relevance to each store’s shopper base.

At the same time, the move towards store segmentation may create more targeted opportunities for suppliers that can support localised ranging and clearer category roles. That could particularly benefit products with a strong fit for specific missions, occasions or store formats, rather than those relying on a blanket national approach.

General merchandise will also remain a key strategic pillar, especially across seasonal. While the category has faced wider pressure across the channel, it is still a key lever for margin and differentiation, helping B&M maintain value across its FMCG offer.