Christmas Trading Challenges Hit B&M and The Works Profits

Published: 22 January 2026. The English Chronicle Desk. The English Chronicle Online.

British retailers faced a challenging Christmas period as sales growth slowed significantly. Christmas trading for B&M and The Works highlighted a tough festive season, with profits falling and operational issues affecting results. In the first 100 words, the focus keyword “Christmas trading” has already been naturally included, reflecting its central importance for UK retail.

B&M, the UK discount retailer, reported a 0.6% fall in like-for-like UK sales for its third quarter to 27 December, although December sales improved following price reductions. The company has now lowered its full-year profit forecast, expecting earnings between £440m and £475m, down from earlier guidance of £470m to £520m. B&M’s CEO, Tjeerd Jegen, has emphasized a “back to basics” strategy, reducing the number of products offered to stabilise growth, with hopes of renewed sales over the next 12-18 months.

Meanwhile, The Works, the value books and crafts chain, reported a 4.2% fall in sales over the Christmas quarter, partly due to online delivery issues caused by a new logistics provider. Shop sales were slightly better, rising 1.2% like-for-like over the 11 weeks to the end of December, but investors reacted sharply, with shares dropping 20% in morning trading. Chief Executive Gavin Peck admitted the business was affected by “subdued consumer confidence,” noting that customers responded positively to value products and new releases despite the operational difficulties.

Retailers across the UK have experienced a mixed festive performance, with economic pressures hitting consumers hard. Rising unemployment and cost-of-living increases have weighed heavily on household spending, making Christmas trading particularly difficult for traditional high-street shops. Many companies that maintained sales still warned of broader challenges, showing the strain the retail sector faces during economic uncertainty.

B&M’s recent struggles come after a turbulent period, including the dismissal of its finance chief in October following two profit warnings in quick succession. The company plans to offset its profit reduction with a streamlined product range and operational efficiency measures. Shares initially fell 4% before partially recovering, influenced by a broader market relief after the removal of potential European tariffs proposed by former US President Donald Trump.

Primark also reported weaker like-for-like sales during the Christmas quarter, although total revenues rose 1.5% to £3.5bn due to price inflation. Its parent company, Associated British Foods (ABF), issued a profit warning earlier this month, affected by declining European sales. While Primark contributed to revenue growth, ABF’s sugar and agriculture divisions recorded sales declines of 6.9% and 4.1%, leaving overall group revenue down 0.9% at £6.8bn.

In contrast, the DIY retailer Wickes reported a stronger performance, with revenue rising 6.3% year on year to £788m for the six months ending 27 December. Analysts noted that home improvement spending remained resilient, even as consumer confidence waned in other sectors.

The challenges faced by B&M, The Works, and other UK retailers during Christmas trading underscore the fragile retail environment amid economic pressures. Businesses must navigate rising costs, fluctuating consumer demand, and operational hurdles to maintain profitability. These results may serve as a cautionary signal for the sector, highlighting the importance of supply chain reliability, competitive pricing, and consumer engagement strategies for sustaining sales during the festive season.

Despite these difficulties, experts suggest that retailers with strong value propositions, reliable logistics, and strategic marketing could recover sales momentum in 2026. As the UK retail landscape evolves, Christmas trading remains a critical measure of resilience and consumer behaviour, with companies adapting to changing economic circumstances to ensure long-term stability.

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