Trouble brews in B&M as bargain shops take a hit

Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?

 A general view of a B&M store on January 19, 2025 in Cardiff, Wales
(Image credit: Matthew Horwood/Getty Images)

B&M used to be one of the stars of the London stock market. The discount chain was founded in Lancashire in the 1970s and expanded rapidly throughout the UK with its cheap and cheerful mix of bargains for the home and the kitchen. The shares hit more than 650p back in 2021, more than doubling over the previous five years as the brand became better known. Over the last year, however, the share price has slumped by more than 40%. Last week, it reported annual profits were down by 13%, and while it managed to increase overall sales slightly, that was only by opening 70 new stores; its like-for-like sales were down by 3% over the last 12 months. The shares fell another 10% on the news.

Its rival, Poundland, is not doing any better. The chain has already been put up for sale by its Polish owners, and it has been reported to be planning a restructuring that would see store closures and rent reductions imposed on landlords. Likewise, Wilko, which operated in a similar part of the retail market, has now gone under. Add it up, and one point is clear. The chains that specialised in selling you some cheap tea towels, a huge bar of chocolate, or a phone charger for a pound or less are all struggling.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.