B&M has reported a slight rise in first-quarter sales after stronger trading in France and at Heron Foods helped offset another decline across its core UK business.

Group revenue increased by two per cent to £1.43bn in the 13 weeks to 27 June, although like-for-like sales at B&M UK fell by 2.3 per cent.

The company said that UK trading was affected by a slow start to the garden and outdoor season, which dampened demand for seasonal ranges in its largest market.

However, continued growth at B&M France and an improved performance from frozen food chain Heron Foods were enough to keep overall group sales moving higher.

B&M has come under growing pressure from supermarket loyalty schemes, which have enabled the major grocers to offer sharper prices on food, household products and other everyday essentials.

It has also been affected by continued pressure on lower-income households, while an accounting error disclosed during the previous financial year added to concerns about its performance.

B&M responded by investing in prices and reviewing its product ranges in an effort to strengthen its value credentials and improve trading across its UK estate.

Its broad range of groceries, household goods, toys, furniture and seasonal products means performance can be particularly sensitive to changes in the weather.

The weak start to the UK outdoor season contrasted with stronger trading in France, which has become an increasingly important source of growth for the group.

B&M reported a 3.6 per cent rise in annual revenue to £5.78bn in its previous financial year, supported by double-digit growth in France.

However, adjusted earnings declined as the retailer absorbed weaker margins and the cost of further price investment.

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