Heron Foods delivered an improved first-quarter performance as its parent company B&M continued to struggle across its core UK business.

B&M group revenue edged up two per cent to £1.43bn in the 13 weeks to 27 June, supported by stronger trading at the frozen food chain and continued growth in France.

However, like-for-like sales across B&M’s UK stores fell 2.3 per cent during the quarter, extending a difficult run for the discount retailer.

The group said a slow start to the garden and outdoor season had weighed on demand for seasonal ranges, although the weakness also comes as competition for value-conscious shoppers intensifies.

B&M sells a broad range of groceries, household essentials and general merchandise, putting it in increasingly direct competition with supermarkets and other discount operators.

The company has faced growing pressure from supermarket loyalty schemes, which allow the major grocers to offer members sharper prices on food, cleaning products, toiletries and other everyday purchases.

That competition has intensified as households continue to closely manage spending, particularly among lower-income shoppers who have traditionally been central to B&M’s customer base.

The group has responded by investing in prices and reviewing its ranges as it looks to reinforce its value credentials and improve trading across its UK estate.

Heron Foods’ improved performance provided some relief during the quarter. The frozen food and grocery chain, which B&M acquired in 2017, operates stores largely across the Midlands and north of England and has become an important part of the group’s food offer.

Its recovery helped B&M keep overall sales in positive territory alongside the continued expansion of its French business, which has emerged as a key source of growth for the company.

The retailer reported a 3.6 per cent increase in annual revenue to £5.78bn during its previous financial year, driven partly by double-digit growth in France.

However, adjusted earnings declined as B&M absorbed weaker margins and the cost of investing further in prices.

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