Similar to companies like Primark they seek out high levels of consumer footfall and try to inspire impulse purchasing decisions when customers browse store aisles. B&M concentrate their store footprints around the 20,000 square foot size which is equivalent to the size of a small supermarket. However, unlike traditional supermarkets, B&M offer little fresh food produce. Instead, inventory is geared towards offering branded long-life food and drink, household and personal care products and, a range of household general merchandise.
Key to B&M’s general merchandising approach is direct sourcing. Working directly with Far East manufacturers enables B&M to avoid intermediary mark-ups to the likes of exporters, importers and distributors in its supply chain. These savings have helped B&M offer a strong value price proposition to customers.
However, after years of benign inflation the recent inflationary surge, across raw materials and freight, may prove testing for B&M’s value perception if pricing must rise. A quandary ahead is whether B&M could mitigate the price rise impact if instead they see consumers down-trading from squeezed real incomes.
