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B&M Adjusts Strategy Amid Cost of Living Crisis

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  Published in Stocks and Investing on Friday, January 23rd 2026 at 10:37 GMT by Liverpool Echo
      Locales: Merseyside, UNITED KINGDOM

Friday, January 23rd, 2026 - Discount retailer B&M is adjusting its strategy to address the ongoing cost of living crisis impacting UK shoppers, despite a relatively strong trading performance in recent months. The company's approach emphasizes competitive pricing and aggressive stock clearance to maintain customer appeal amidst challenging economic headwinds.

Recent trading updates reveal a mixed picture for B&M. While overall sales increased by 2.4% compared to the previous year, like-for-like sales dipped by 1.7%. This subtle decline, though seemingly minor, highlights the pressure consumers are facing and the heightened scrutiny on spending habits. The broader economic climate remains a significant concern for the company, even as they celebrate pockets of success.

B&M operates a vast network of over 1,100 stores across the UK, and also maintains a presence in several European countries. This expansive reach means they are keenly aware of the diverse pressures felt by consumers in different regions. The company's management team recognizes that maintaining sales volumes requires a proactive response to the changing landscape.

A Focus on Value and Clearance

The cornerstone of B&M's current strategy revolves around providing exceptional value and accelerating stock clearance. Recognizing that consumers are increasingly price-sensitive, B&M is doubling down on its commitment to offering competitive pricing across its wide range of products, from homeware and garden supplies to food and toys. This involves a meticulous review of pricing structures and a willingness to offer discounts to move inventory quickly.

Stock clearance is another key component. With consumers tightening their belts and delaying discretionary purchases, B&M needs to efficiently manage its stock levels. This means proactive clearance events, special promotions, and potentially adjusting order volumes to prevent overstocking in the future. The aim is to free up capital and ensure that shelves are stocked with the products that consumers are most likely to buy now.

Maintaining Profitability in a Tight Market

The commitment to value and clearance isn't happening in a vacuum. B&M is simultaneously implementing measures to optimise operational efficiency and protect its profitability. The reported increase in gross profit margin to 35.2% indicates that the company is actively working to manage costs and maintain healthy margins despite the pricing pressures. This likely involves streamlining supply chains, negotiating better terms with suppliers, and improving in-store efficiency.

Analysts suggest that B&M's performance highlights a broader trend in the retail sector. While discounters generally fare better during economic downturns, even they are not immune to the impact of reduced consumer spending. The slight decline in like-for-like sales underscores the challenges of maintaining growth when household budgets are stretched thin.

Looking Ahead: Adapting to the 'New Normal'

B&M's strategy signals an acknowledgement that the cost of living crisis isn't a temporary blip but a protracted challenge that will likely shape consumer behavior for the foreseeable future. The retailer is clearly adapting to this 'new normal' by prioritizing value, efficiency, and flexibility. Future success will depend on their ability to continuously monitor consumer sentiment, react swiftly to market changes, and innovate to offer products and services that meet the evolving needs of budget-conscious shoppers. The company's management is likely evaluating further investments in data analytics to better predict demand and optimize inventory management. This might also involve a greater focus on online sales channels, catering to shoppers who prefer the convenience and comparative shopping opportunities of the internet.

While B&M's recent trading update showed resilience, the ongoing economic pressures require vigilance and a continued commitment to providing genuine value for money - a lesson learned across the entire retail sector.