B&M shares were down 6% to 516.8p in early morning trading on Friday, following the announcement that Chief Executive Officer Simon Arora would be stepping down after over 17 years in the position.
The company said that Arora is scheduled to leave the role in 12 months, and will remain at the group over the coming year to facilitate a smooth transition over to his successor.
Chairman Peter Bamford is set to lead a succession process to consider internal and external candidates to replace Arora as Chief Executive.
“On behalf of the Board and all stakeholders of the Group, I would like to thank Simon for his leadership over the past seventeen years,” said chairman Peter Bamford.
“The remarkable growth of the business from its humble beginnings to where it is today reflects his exceptional passion, determination and ability.”
“Moreover, he has established a firm foundation from which the Group will continue to deliver its successful growth strategy and great value for its customers. We are all very grateful for his tireless efforts and he will leave us next year with our best wishes for the future.”
Simon Arora acquired the B&M franchise in 2004 with his brother, Bobby Arora, when the group consisted of only 21 stores.
The two brothers have since developed the company into a portfolio of 1,100 locations and gained a spot on the FTSE 100 index.
Bobby Arora has confirmed that he will remain in his role at the business as Group Trading Director after Simon retires.
“It has been a privilege to lead B&M for seventeen years and I am immensely proud of the incredible journey that we have been on,” said Simon Arora.
“B&M’s value for money proposition remains as relevant and compelling to shoppers today as it has ever been.”
“I would like to thank all 38,000 members of the B&M family for their hard work and commitment both now and as we continue our expansion.”
