B&M boss Simon Arora will retire in 2023 after more than 17 years of creating a discount chain in the UK’s major retail success story
- B&M sales and profits have risen since the beginning of the coronavirus pandemic
- Simon and Bobby Arora bought the discount store back in December 2004
- Today, B&M has about 1,100 institutions and more than 35,000 people
B&M CEO Simon Arora is leaving the business, which he helped turn from a failed food chain into a British retailer.
The firm told investors on Friday that the billionaire businessman would step down in a year and his younger brother Bobby would remain the firm’s sales director.
When the couple bought a discount retailer in December 2004, the regional supermarket operator with 21 stores struggled for survival and had just lost £ 250,000.
Beginnings: when Aroras bought B&M back in 2004, it was a regional supermarket operator with 21 stores that was fighting for survival and had just suffered a loss of £ 250,000
The brothers brought new leadership and shifted the company’s focus from food to selling products from a wide variety of categories, such as furniture, toiletries, gardening equipment and clothing.
Growth skyrocketed during the global financial crisis as more Britons began shopping for benefits, and the group took advantage of lower retail rents to purchase vacant properties, some of which were former Woolworths stores.
B&M has been able to keep prices low because it tends to supply products directly from suppliers in Asia, where production costs are much cheaper, and from manufacturer sales.
By the early 2010s, the company had annual sales in excess of £ 1 billion, and B&M had opened a new 620,000-square-foot headquarters and distribution center in Spike, Liverpool, for further expansion.
Within a decade, it had bought the Heron Foods chain of frozen food stores, entered the markets of France and Germany and was listed on the London Stock Exchange with a valuation of around £ 2.7 billion.
The Arora brothers and majority owner B&M, private equity firm Clayton Dubilier & Rice, have earned about £ 1 billion from the initial public offering. Three years later Simon and Bobby sold another £ 215 million.
Departure: CEO Simon Arora (middle) will step down as CEO in a year. Here he is pictured with his brothers Robin (left) and Bobby (right)
Their wealth gained even more when the coronavirus pandemic forced more Britons to seek a deal, and B&M was classified as a major retailer in the UK, meaning its stores could remain open.
Over the last full fiscal year, B&M’s revenue rose by more than £ 1 billion to £ 4.8 billion as it also benefited from the boom in home-made sales and horticulture, and profits more than quadrupled to £ 428.1 million. .
Today, the company has around 1,100 establishments across the UK and France, employs more than 35,000 people and is listed in the FTSE 100 Index.
B&M Chairman Peter Bamford said of Simon Aror: “The remarkable growth of the business from its humble beginnings to where it is today reflects his exceptional passion, determination and ability.
“Moreover, it has created a solid foundation from which the group will continue to pursue its successful growth strategy and great value to its customers.”
Simon Arora said: “Leading B&M for seventeen years has been an honor and I am very proud of the incredible journey we have gone through.
“B&M’s value for money offer remains as relevant and attractive to buyers today as before. I would like to thank all 38,000 members of the B&M family for their hard work and commitment both now and as we continue to expand. ”
B&M promotions late in the morning they fell 5.85 percent to 517.8 pence, though their value has still risen more than 72 percent in the past two years after the phenomenal growth in trade caused by the pandemic.
B&M CEO Simon Arora will retire in 2023
Source link B&M CEO Simon Arora will retire in 2023