Shares tumble as the discounter prepares for a £45m earnings hit.
B&M has issued a profit warning and announced the departure of its chief executive as Rachel Reeves’ impending tax measures put pressure on businesses.
The discount retailer now expects underlying earnings of £605m to £625m this year, down from its previous forecast of £650m. The announcement coincided with CEO Alex Russo’s retirement on 30 April 2025.
Shares tumbled more than 11%, placing B&M at the bottom of the FTSE 250. The company attributed the downgrade to its current trading performance, economic uncertainty, and potential exchange rate volatility.
Retailers have voiced concerns over deteriorating conditions following the Chancellor’s October Budget, which included a £25bn tax hike on businesses.
Ms. Reeves raised employer National Insurance contributions and increased the national minimum wage by 6.7% to £12.21 per hour—both measures expected to hit the retail sector hard.
Consumer confidence has declined sharply since Labour took office, with retail sales performing poorly in the lead-up to Christmas, unexpectedly falling by 0.6% in December.
The UK’s largest retailers have warned that the high street could lose at least 300,000 jobs over the next three years. A group including Marks & Spencer, Sainsbury’s, and Tesco recently cautioned that rising costs and increasing regulatory pressures could create a “perfect storm,” potentially eliminating one in ten shop-floor positions by 2028.
Amid its profit warning, B&M also announced that CEO Alex Russo would step down after two and a half years at the helm.
Russo joined B&M in 2020 and was appointed CEO in September 2022, succeeding Simon Arora—the co-owner who transformed the business from a regional retailer in the North East into a multibillion-pound national chain.
Headquartered in Liverpool, B&M currently operates around 740 stores in Britain, more than 120 in France, and 335 under the Heron Foods brand. The company expanded rapidly during the cost-of-living crisis, including acquiring 51 Wilko stores for £13m in 2023 after its rival collapsed.
B&M chairman Tiffany Hall praised Russo’s leadership, highlighting his role in expanding the company’s store footprint in both the UK and France while maintaining a strong focus on operational efficiency and cost control.
Reflecting on his tenure, Russo said B&M had “successfully navigated the pandemic years and is now larger and stronger.” He added that he was retiring, leaving behind “growing businesses with great potential in both the UK and France.”
