Fellow listed retailers Boohoo, Debenhams and Huddled also release trading updates amid sector-wide pressures
A raft of trading statements from London-listed retailers has shed light on the ongoing tussle for sales between online platforms and bricks-and-mortar stores, as household budgets remain squeezed, reports BritPanorama.
FTSE 250 retailer B&M has revealed an almost 50% plunge in annual profit during what it described as a “difficult year.” It was the most striking development in a flurry of updates from London-listed retailers on Wednesday.
These updates underscore the competitive struggle across the sector between conventional stores like B&M, their digital operations, and newer internet-only players such as Peeko. Debenhams, once a high-street heavyweight, has shifted entirely to an online model.
B&M reported a drop of more than 47% in group profit before tax to £227 million for the year ending 28 March, from revenue of £5.8 billion, down 3.6%. Tjeerd Jegen, chief executive of the discount homeware and grocery retailer, characterised it as “a difficult year that saw profits fall due to a challenging market and execution issues.”
The 700-store chain unveiled a turnaround strategy in October aimed at “restoring like-for-like sales growth at B&M UK.” Operating approximately 150 locations in France, B&M noted that like-for-like sales declined by 0.1% over the year. Jegen added: “The past six months has seen us sharpen our pricing, improve on-shelf availability in best-selling brands and revamp our in-store promotions.”
Current deals include Visage Pour Homme aftershave at £3.99 and an eight-pack of Duracell AA batteries for £4.50, with a box of 200 Yorkshire Tea bags priced at £5.79. Jegen expressed confidence that B&M could offset rising energy costs through cost mitigation efforts, stating that the benefits would reflect positively on the bottom line once sales return to growth.
The Liverpool-based retailer, founded in Blackpool in 1978, employs approximately 35,000 staff and serves around 4 million shoppers each week. It was previously listed in the FTSE 100 but was relegated in 2024 after four years.
Competition has intensified in the retail sector, as financially stretched consumers have curbed discretionary spending amid rising inflation driven by soaring energy prices and the repercussions of Russia’s invasion of Ukraine in 2024. Additionally, the US and Israel’s military actions in Iran in 2025 have resulted in a surge in global oil prices, likely causing further economic strain.
Recent research from Vanquis, a banking firm, has revealed that nearly a third of respondents to its Financial Wellbeing Index rely on credit to cover everyday expenses, with energy bills surging by 17% over two years. The study identified groceries as a primary trigger for drawing down savings, cited by 25% of respondents.
As household budgets tighten, the challenges facing conventional retailers intensified, cast against the rise of digital competitors. Huddled, a London-listed company behind the Peeko website offering discounted surplus stock, reported revenue of £4.2 million in the first quarter of 2026, slightly down from £4.4 million during the same period the previous year.
Despite a decrease in revenue, Huddled noted strategic decisions aimed at moderating volume while addressing structural issues. Customer activity on the platform was notable, processing 86,000 orders between January and April, with an average order value of £37 and a product margin per order of £17.
Huddled positions Peeko as “an online Costco,” stocking items such as Comfort Professional Sensitive Classic Fabric Cleaner for £6.99 and a box of 24 Mars Bars for £12.99. Chief executive Martin Higginson remarked, “We have a great value proposition, next-day delivery, genuine customer loyalty, and the margins to justify scaling. The hard part is done. What comes next is the exciting part.”
The owner of the Debenhams brand released an update mirroring these trends. Once a well-known high street fixture, Debenhams has been transformed into Britain’s online department store after being purchased by Boohoo for £55 million in January 2021, excluding physical stores and their workforces.
During the first quarter to the end of May, Boohoo reported that “momentum in the Debenhams Group multi-year turnaround accelerated,” with Gross Merchandise Value climbing by 0.5% year-on-year and trading in May described as “particularly strong.”
Boohoo also runs its own-name website and the PrettyLittleThing brand, announcing that gross margins in the first quarter reached 53.5%, up from 52.1% the previous year. The company reported reduced returns by approximately 5% and cut exceptional costs by 72%, while capital expenditure fell by 54% year-on-year.
Chief executive Dan Finley noted: “Debenhams Group has returned to growth, and Q1 marks the inflection point we have been working towards. This is the result of our multi-year turnaround: the move to an asset-light marketplace model, warehouse consolidation, cost reset, and rebuilding every brand on a single proprietary platform.”
The contrasting fortunes among London-listed retailers highlight the pressures facing an industry contributing around £490 billion in annual sales to the UK economy in 2025 and accounting for roughly 3 million jobs. City investors will be closely monitoring developments, eager to identify the sector’s winners and losers as it continues to evolve.
Wednesday’s announcements were well received by the markets. B&M’s shares surged 17% to 199p, Huddled climbed 7% to 0.78p, and Boohoo rose more than 11% to 21p.
Peel Hunt analyst Jonathan Pritchard noted that B&M’s results “were a beat versus our and consensus expectations,” with earnings around “2% clear of hopes.” He added: “A lot is happening at B&M, and some of the ‘back to basics’ plans are having a clear impact.”
The retail landscape is in a state of flux, with traditional models facing unprecedented challenges from digital competitors. As pressure mounts from rising costs and shifting consumer behaviour, companies will need to adapt swiftly. How they navigate these changes could determine their future standing in an increasingly competitive market.
