In a time where physical stores have generally been suffering due to online competition, low price retailers have experienced an uncharacteristically prosperous recent past. One recognisable name in the bargain retailer industry is B&M retailers (BMEB.L). They have grown significantly in recent years with their share price doubling over the past 5 years and they offer a variety of products including food, homeware & general merchandise. By offering some essential goods such as some groceries, they managed to secure an essential retailer status meaning they have benefited from being able to operate during UK lockdowns. 

Market research in the UK shows the recent growth in the low price retailer industry has been driven not only by growing demand from working-class consumers but also with growing demand from the British middle class. While the rate of growth they have experienced over the past year may be anomalously high there is still potential for further growth over the next few years as these consumer tastes continue to change.

Broker Consensus (03/02/21)

Analysts covering this security

BofA Global Research
Deutsche Bank
Jefferies – James Grzinic
HSBC – Andrew Porteous
Credit Suisse North America – Pradeep Pratti
RBC Capital Markets – Richard Chamberlain
Morgan Stanley – Audrey Borius
Citi – Assad Malic
Investec Bank (UK) Plc – Ben Hunt, CFA
Goldman Sachs Research – Richard Edwards
Canaccord Genuity
UBS Equities – Adam Cochrane
Nomura – Fraser Ramzan
Numis Securities – Simon Bowler
Peel Hunt – Jonathan Pritchard
Exane BNP Paribas
Macquarie Research – Andreas Inderst
JPMorgan – Borja Olcese
Barclays – James Anstead
Shore Capital Stockbrokers – Gregory Lawless