McColl's Posts Strong Revenue Growth In 2017, Boosted By Acquisitions
UK convenience retailer McColl's has reported 19.1% revenue growth in its full 2017 financial year, following the 'successful integration' of nearly 300 newly-acquired stores.
Full-year like-for-like sales were up 0.1% as a result of growth in key grocery categories, according to the grocer.
Performance was significantly boosted by the integration of 298 new stores, which McColl's acquired from the Co-op last year, and have significantly added to the retailer's presence in the convenience market. The store transformations were completed in mid-July.
"I am delighted to report another strong quarter of revenue growth," said Jonathan Miller, chief executive of McColl's.
"For the first time the business has achieved annual revenues of more than £1 billion, boosted by our transformational acquisition of 298 high quality convenience stores last year, demonstrating that this is now a business of real scale."
"McColl's is well positioned to continue to take advantage of the growing convenience market, with clear opportunities to enhance organic growth across our estate, as well as continued expansion through our acquisition programme," he added.
Overall, McColl's says that the group remains on track to achieve results for the full year in line with management's expectations.
In August, McColl's announced a new wholesale supply partnership with UK supermarket chain Morrisons, which is set to be rolled out next year.
"As we look ahead to next year, we will focus on delivering an enhanced customer offer in over 1,300 stores through the groundbreaking wholesale partnership we signed with Morrisons, which will see us launch hundreds of Safeway branded products, exclusively in McColl's from January 2018," said Miller.
However, the retailer adds that it is 'sad and disappointed' regarding the collapse of wholesale company Palmer & Harvey last week.
P&H, which supplied around 90,000 supermarkets and convenience stores across the UK, including McColl's, has been hit by 'challenging trading conditions' in recent months, and efforts to restructure the business have been unsuccessful.
McColl's says that it is now in ongoing discussions with supply chain partners and manufactures to ensure a continued supply to the newsagents and smaller convenience stores that had previously been serviced by P&H, to minimise any impact on customers.
Overall, the retailer currently operates 1,611 stores across the UK.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.