The billionaire brothers who own budget chain B&M say keeping things “simple” is the secret to their £2.5billion net worth.
When Simon and Bobby Arora snapped up the discounter in 2004, the business was running at a loss and had just 21 shops to its name.
Shoppers were greeted “with what looked like a jumble sale” and a “chaotic layout” that failed to keep customers coming back, reports the Guardian.
But fast forward 17 years to 2021, and B&M now has more than 685 stores in the UK and employs over 35,000 staff - with its hard to navigate layout replaced with what City analysts call a “treasure hunt” vibe.
Its low prices see some four million customers walk through its doors a week, according to its website - a far cry from when the chain was founded as a single store in Blackpool, Lancashire, by businessman Malcolm Billington.
B&M was acquired by Simon, 51, and Bobby, 49, in December 2004 from Phildrew Investments, and this is largely regarded as the turning point in the business.
Their brother Robin, 36, later joined them as director, although he is thought to be less involved in the day-to-day running.
So how did the brothers amass their wealth?
The family come from humble beginnings, with their father having emigrated from New Delhi to the UK in the 1960s with just “£10 in his pocket”.
He went on to set up several businesses, one of which - a cash and carry - Bobby decided to work for after school, while Simon studied law at Cambridge University.
The siblings' first success can be chased back to the 1990s when they ran wholesale business, Orient Sourcing, which imported cheap homewares for high street chains.
They eventually sold this for an eye-watering £30million profit before turning their attention to B&M, and are now said to be so close that they live next door to each other.
Simon, who acts as chief executive, while Bobby is trading director, once said of their success: “We like to keep it simple.
“We sell name brands that our customers recognise; we have direct sourcing, so there’s no middleman; and we have good retail standards.”
In November 2020, the brothers were reported to be on the verge of netting another £44million windfall after profits more than doubled during the coronavirus crisis.
The boss and his family are the biggest shareholders in the business, netting a large chunk of a £293milion payout from B&M Group, which also includes Heron Foods and French discount chain Babou.
It comes after sales jumped by 25.3% to over £2.2billion in the six months to the end of September, while profits soared 128% to £253milllion.
The company also paid a separate £150m special dividend in April last year.
And in January 2021, the Arora family were said to have handed themselves a £30million bonus from a company dividend payment to shareholders after sales soared over Christmas.
Around 30,000 shop floor workers also got an extra week's wages as a thank you for their efforts over the pandemic.
As for the future of B&M, shares in the group are up 49% over the last year, valuing the business at £5billion – higher than that of Sainsbury’s.
There are also plans for 25 new B&M stores in the UK by the end of the year, 12 Heron Foods outlets and three more Babou shops.
Speaking last month, Simon said: "The last year has been an exceptional one.
"Our results reflect the speed at which we responded to the challenges presented by Covid-19 and the strength of our execution."
But he issued a warning for the rest of this year, saying there were "uncertainties" ahead as lockdowns eased.
Trading patterns are "likely to be unpredictable for much of the year" but the company remains confident that the business will remain "relevant" to its core shoppers.
