B&M is to open a 700,000 sq ft distribution and imports centre in Ellesmere Port, Cheshire, to support its ambition to grow its UK estate to 1,200 stores.
The variety discounter has signed a 10-year lease with real estate investor Cain International, with the site due to commence operation in 2025, joining B&M’s five existing DCs.
The retailer said it had opened 30 new B&M UK stores in the past six months alone. It said the new Ellesmere Port site would enhance its import capabilities and streamline its logistics operations as it continued to grow its UK estate, which currently stands at about 770 stores.
B&M recently reported revenue growth of 3.7% to £2.6bn in its first half to 28 September, maintaining its profit guidance for the full year. However, like-for-like sales in the UK fell 3.6%, meaning most of the growth was fuelled by opening new stores.
The results were met with a mixed response from investors, with Shore Capital analyst Clive Black calling the 1,200-store target “somewhat excessive on the current near-800 store base”.
“If new outlets are performing so well,” said Black, “then it suggests to us that the residual estate, where management states there are extensive senior executive visits, are going backwards at a bit of a pace, which may suggest action to examine any tail that may be emerging.”
B&M CEO Alex Russo said: “Our new store opening programme is on track and performing exceptionally well. To futureproof this volume growth, I am pleased to announce that next year we will open a new imports centre in Ellesmere Port.
“This facility will manage inbound container flow and optimise the capacity of our five existing B&M UK distribution centres which are handling ever-growing volumes. This is the right productivity step to support both our short and long-term growth plans, including our target of not less than 1,200 B&M UK stores.”
B&M said the Ellesmere facility was being designed with energy-efficient features including solar panels, rainwater harvesting systems and the use of recycled materials.
It said the facility – strategically located near the transport links of the Manchester Ship Canal, the Port of Liverpool and major motorways – would boost the local economy by creating hundreds of skilled jobs and training opportunities.
A B&M spokesperson said it would “play an important role in supporting our expanding logistics network and store footprint across the UK”.
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