Why the cost of living crisis could be a boon for this cheap retailer

Like many retailers, B&M is facing the dual headwinds of lower sales and higher costs as inflation bites. But its business model has proved hugely successful, says Rupert Hargreaves, and it should have what it takes to prosper in a tough market.

B&M store
B&M has grown from just 21 shops in 2004 to 1,125 now
(Image credit: © John Keeble/Getty Images)

It’s an incredibly challenging time to be a retailer.

Not only are these companies having to deal with rising input costs across the board and demands for higher wages from employees, but the cost of living crisis is also weighing on consumer sentiment and spending power. These dual headwinds of lower potential sales and higher costs are the worst case scenario for the sector.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.