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As long as they open new stores and execute this as they do it will go up coming year meanwhile paying dividends. This is a long term play like the US discount chains 10 years ago. The growth for discount retailing is above average in the coming decade for the squuezed middleclass looking for bargains offline. Ignore the short term analyst, focus at the longer term picture. Management is great, focus is great, growth plans are realistic. Let it compound and I accept days like this when Mr Market is doing its job.
Well said, totally agree.
Not sure though if there is that much more demand for more discount stores.
We also have poundland and home bargains to compete with.
I think my assessment that the sp was running away with itself a bit was correct, but it went much higher than I thought.
The same happened to me with PETS a few years ago. But a profit is a profit.
Indeed, the dust will settle after a few days and it will start climbing again. I see £6 as the top, for now.
I genuinely think there will be more demand for them, maybe not the furniture fraction but the food, electrical etc should still fly out, based on the current economy, the average man will look to save where he can & if you can get Heinz or any brand names in there stores cheaper than Asda, Sainsbury's Morrisons etc then they're going to do it. I know we have Lidl & Aldi but we had Netto too, that didn't last long, B&M appears to have made a bigger impact and one of there Superstores close to where I am never seems to be that quite. certainly one for the long term in my opinion. Buy more when it's this low again in my opinion.
Not sure though if there is that much more demand for more discount stores.
We also have poundland and home bargains to compete with.
I think my assessment that the sp was running away with itself a bit was correct, but it went much higher than I thought.
You think Aldi and Lidl have not had a big impact and are not going to last that long? That sir I don't believe.
I'm encouraged by the performance of Heron and in France and still believe a special dividend is likely later this year.
Investors Chronicle: "Stores in France are also proving popular, with sales up 29 per cent. Chief executive Alex Russo said the group remains “relentlessly focused on price, product and excellence in retail standards”.
I think we have become conditioned to assume that everything at B&M is cheaper. Food inflation notwithstanding, I have noticed that some of their offering is less competitive than it used to be. For example, at my local retail park, a tin of custard (probably made by the same producer) is cheaper at M&S Food than it is next door at B&M.
B&M are still competitive on branded lines, when compared with the major supermarkets, but they are not always as cheap as you might think. Also, because B&M carry only branded goods (in food and household) they are quite vulnerable to customer pushback against shrinkflation. I bought a twin pack of Persil non-bio from B&M. The next time I went to B&M and bought the 'same' pack, when I got it home and saw it standing next to the old bottle, I noticed that the bottle (and contents) had shrunk by about a quarter. The price hadn't. Of course, that isn't just a B&M problem, but other retailers tend to offer own-brand 'unshrunk' alternatives.
If B&M's reputation for value starts to slip, there is a danger of shoppers moving elsewhere and their bottom line suffering as a result. There's no evidence that this is happening at the moment, but who knows what lies ahead? Judging by my own shopping experience, it is a danger that cannot be dismissed.
Thanks for this data. You see a similar momentum in Colruyt Belgium, they counter this with a strong growing private label with higher margins. I expect this more and more to happen at BME also. The A brands will always be cheaper in the mix at BME as this is their DNA (EDLP) just like at Costco and Walmart pass on the economies of scale to the consumer and grow volume to have leverage to the big guys producers. If they fail at this the thesis is changed, do not see this happening as long as current leadership runs the ship IMHO.