Group revenue at B&M jumped by 2.4% to £1.34bn in the first quarter of its financial year, as it opened 19 gross UK stores in the 13 weeks to 29 June.

The budget supermarket, which operates across the UK and France and also owns the Heron Foods brands, said it is on track to open 45 stores in the latest year, while all the stores which opened last year are performing ahead of expectations.

Although the firm saw its like-for-like sales drop by 3.5% in the first quarter, B&M said that this was a result of a strong performance in Q1 2023 and that unseasonal weather in April and May also contributed to this drop.

Chief executive at B&M, Alex Russo, said: "The growth fundamentals of our business are strong, with a highly disciplined approach on pricing, product and high operational standards. We continue to offer our customers exceptional value at a time when household incomes are under pressure.

"Ahead of Q2, we have launched our Everyday Value range with more than 500 new lines in core categories across home, electrical and pet in the UK and France."

B&M said it expects to continue its profitable cash generating growth across the full financial year, unpinned by "strong fundamentals and normalising comparatives".

Furthermore, it added that its logistics capacity continues to support volume growth well, with its network configuration in the UK strengthening over the last two years.

Investment analyst at AJ Bell, Dan Coatsworth, added: "The market has rightfully been concerned about slow growth for B&M and its latest update doesn’t offer much hope. UK operations remain lacklustre, particularly when you look at the like-for-like sales figures which are negative.

"It’s been a miserable time to be a retailer thanks to poor weather for much of the year deterring people from going to the shops, as well as the ongoing high interest rate environment making individuals think twice about spending money. B&M should have benefited from individuals trading down from more expensive shops over the past few years, but that catalyst now looks to have played out.

"Some people are now trading back up, while others remain under financial pressure, all of which makes it harder for B&M to sustain strong levels of sales. Headline revenue might be going up, but that’s partly to do with opening new stores. Competition is fierce and unless B&M can produce a radical new idea to accelerate sales growth, the company might be wading through mud for some time."

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