Shoppers searching for ways to trim their budgets have boosted sales at the discounter B&M and the fashion chain H&M in the latest sign of resilient trading on Britain’s high streets.
B&M said sales rose 9.2% at its core UK stores with trade in both groceries and non-food doing well.
Analysts at Peel Hunt noted that while the figure was likely to have been supported by shop price inflation, which eased this month to 8.4% for the UK as a whole, according to the British Retail Consortium trade body, at least half of the growth was a result of more transactions at the till.
Alex Russo, the chief executive of B&M, said: “Our strong trading momentum demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail standards.”
Julie Palmer, a partner at the advisory firm Begbies Traynor, said: “The cost of living crisis isn’t bad news for everyone: the discount retailer B&M is reaping the benefits of being perfectly positioned to cater to increasingly hard-pressed consumers looking for bargains.
“As times get harder, and with food prices rising relentlessly, shoppers who may have previously dismissed B&M are finding that the retailer’s pile it high, sell it cheap approach is what they need.”
Swedish-based H&M said its summer collection was lifting sales, with women’s fashion and its beauty ranges proving popular.
Helena Helmersson, the chief executive, said sales had held up despite “reduced purchasing power” for its shoppers, who were hit by the cost of living crisis and “unfavourable weather conditions compared with last year” after a cool and rainy start to spring in Europe.
She said sales in stores had increased despite the group closing 300 outlets worldwide in the past year.
“The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction,” she said.
Shares in H&M jumped 15% on Thursday after its second-quarter profit beat estimates as cost-cutting measures started to bear fruit.
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The relatively strong figures for B&M and H&M follow similarly upbeat reports from Next and Primark.
Next upgraded sales and profit forecasts as warmer weather and an uplift in real household income – after April pay rises kicked in – improved trading.
Associated British Foods, the owner of Primark, also upgraded its forecasts. It said swimwear and other holiday outfits, as well as price increases to cover higher costs, had kept sales buoyant.
