Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This is old news, from few days before update end of May. Diversion flight on way back to North Yorkshire.
Sunak’s helicopter landed in the back garden of Bobby Arora, one of three brothers who own the B&M chain of stores, in Hale Barns, Altrincham. Arora lives next door to his brother Simon, the company’s former chief executive
RS
Any idea who?
Big UT of £8m.
The markets seem to like the possibility of b&m acquiring wilko
Wilko's biggest problem was owning too many sites in expensive high street locations, whereas B&M trades in retail parks and other edge or out-of-town locations where it can be cheaper to trade and shoppers can park their cars to take away large purchases.
B&M may well benefit from the decline of Wilko (it probably has already), but I think there is also a warning here - that no discount chain is immune from this kind of reversal in fortunes.
Yes I can see it
While b and m have retail park locations (Wilko had a few) they also have some high street stores which will also benifit
Wilko had £1 billion + turnover, if they fully close this will be in the market for b&m to take a share of. They might not get it all but there is a shout here for growth.
I learnt the hard way, I worked for Comet, back in the day! Made good money from buying currys shares when my job went!
Sounds like Wilkos is on the brink. Would surely be beneficial to B&M. Any thoughts?
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.
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.
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”.
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 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.
Indeed, the dust will settle after a few days and it will start climbing again. I see £6 as the top, for now.
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.
Well said, totally agree.
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.
Bit of a surprise with the initial market reaction.
Peel Hunt noted “the shares have had a great run but we are slightly concerned about valuation, so stick with a hold.”
Shore Capital also kept its hold rating. “We remain cautious due to the increasingly challenging year-on-year comparisons expected for the remainder of the year, a worrisome increase in shrinkage, and the potential need for price adjustments to support low-income UK consumers,” it said.
Discount store One Beyond opens in Leicester Haymarket. This company was started by former Poundland ceo
You are right, it doesn't give margin or profit figures but it does say "Strong, profitable trading momentum"
If this level of growth can be maintained I would be surprised if there is another special divi at some point.
Update only talks about revenue as far as I can see. In that period minimum wage has increased
Results look good.
Should not have sold.
No-one knows for sure but signs are positive to at least keep at these levels. Tomorrow's update should give an indication.
Bank of America raised it's target price to £6.75 today.
I sold a few weeks ago, too early obviously. I did not think it would go so high so quickly. My view is that the sp is running a bit hot now. Could be wrong of course.
There's a trading update due on Thursday. This what Proactive Investors says:
"B&M European Value Retail is another of this week’s stocks on the rise, edging back towards all-time highs after announcing last month that sales for the first nine weeks of the financial year were up by 8.3%.
Analysts said the update put to bed any concerns about an easing of the trend towards trading down and expects confirmation of healthy trading in Thursday’s trading update"