B&M will start selling frozen food such as pizzas, chips and ice cream in a bid to take on rival discounters and the Big Four supermarkets.
The bargain retailer’s chief executive, Simon Arora, confirmed it will begin selling frozen food within the next two weeks after buying Northern grocer Heron Food Group for £152million last year.
B&M stocks food with a long-shelf life such as tea bags, biscuits and crisps. Unlike discounters Aldi and Lidl, which sell own-branded produce, it sells the likes of Walkers, Kellogg’s and Hellmann’s at reduced prices.
B&M chief executive, Simon Arora, confirmed it will begin selling frozen food within the next two weeks after buying Northern grocer Heron Food Group for £152m last year
Arora said: ‘We’re now only a couple of weeks away from our first B&M store having freezer cabinets and a meaningful chiller cabinet.
‘The way we put it, is that if the shopper comes to us for cornflakes, baked beans or tomato soup, why won’t they also buy a margherita pizza, a tub of ice cream or a bag of french fries?’
Amisha Chohan, equity research analyst at Quilter Cheviot, said B&M’s unique selling point of discounted products gave it an advantage over rivals.
‘Store performance and store rollouts have driven faster revenue growth than Aldi and Lidl,’ she said.
Bryan Roberts, global insights director at TCC Global, added: ‘The media is obsessed with Aldi and Lidl, but is overlooking the pain that the likes of B&M and Home Bargains are inflicting on Big Four supermarkets.’
B&M reported strong sales growth of 3.9 per cent in the 13 weeks to December 23. Revenue reached £969.8million.