Discount retailer B&M has issued its second profit warning in three months due to price cuts on leftover products. The company’s share price has declined by half since May last year. B&M implemented a “Back to Basics” strategy in October to streamline operations by reducing product range and improving pricing. Despite a 0.6% sales drop in UK stores for the crucial December quarter, the company remains optimistic about recent performance.
The firm revised its full-year profit forecast to £440-475 million, down from £470-520 million, citing trading challenges and an accounting error from last October. CEO Tjeerd Jegen emphasized the long-term benefits of strategic investments in clearing discontinued lines and price adjustments. In other news, Waterstones reported a slight profit increase by implementing cost-saving measures to counter rising worker-related expenses.
Meanwhile, HMRC plans to replace automatic fines with a points system for self-assessment tax returns. A new UK bank, This Bank, has launched with competitive savings products, and the Black Sheep Brewery has been saved in a £4.5 million deal. Wetherspoons’ founder highlighted the tax disparities between pubs and supermarkets, while fans reacted to the rising price of a hash brown at McDonald’s.