B&M UK, the 560-store value retailer, grew sales by 17.2% for the 6 months to Sept 23, with earnings up 20% to £107.8m.

The group’s chairman, Sir Terry Leahy, said pre-tax profits had also risen, although gross margins were down 0.8% thanks to a shift in the sales mix towards the lower margin grocery and FMCG products and end of season clearance activity, particularly on gardening and outdoor products.

“Our trading momentum in the UK has been maintained, driven by more shoppers seeking out value at B&M, combined with further improvements to our offer for customers particularly in ranging, pricing and store standards,” he added.

B&M has opened 50 new stores this year and believes there is potential for 950 or more as consumers across all income groups continue to shift towards discount formats for regular purchases.

“In tough times, shoppers don’t just love a bargain, they need a bargain and B&M's competitive position has never been stronger,” sir Terry said. “Whilst the economic and consumer background remains uncertain, we are confident that B&M is well-positioned to prosper even in a difficult retail environment.

“In the coming months we note that we face the challenge of trading against last year's exceptionally strong Christmas performance.”