McColl's Posts Positive Like-For-Like Sales Following Acquisitions
UK convenience retailer McColl's has announced that total revenue was up by 31.1% in its third quarter and 15.8% in the year to date, following the successful integration of nearly 300 newly-acquired stores.
In the third quarter, like-for-like sales were up by 0.7% in convenience stores, and by 0.3% in newsagents. For the year to date, like-for-like sales were up by 0.4%, driven by growth in key grocery categories.
Performance was boosted was 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 completely in mid-July.
"This has been a significant quarter for McColl's," said chief executive Johnathan Miller.
"The 298 newly integrated convenience stores have driven strong revenue growth, and our existing estate has continued to perform well, delivering a second consecutive quarter of positive like-for-like sales growth."
The group says that it is on track to achieve results for the full year in line with management's expectations.
At the start of August, McColl's announced a new wholesale supply partnership with UK supermarket chain Morrisons, which will see products from the relaunched Safeway brand, along with Morrisons branded products sold in McColl's stores. A phased roll-out programme is set to commence in January 2018.
"We're delighted to have secured Morrisons as our long-term wholesale supply partner and, with recent research confirming that the Safeway brand resonates with over two thirds of shoppers, we are excited to be relaunching it within McColl's stores," said Miller.
"We're confident this partnership will significantly enhance our fresh food credentials and we expect a material sales and profit benefit in the medium term."
The retailer is also working on a 'refresh' programme to modernise its retail network. Three stores were completed this quarter, with 20 more planned by the end of the financial year.
"We continue to look at opportunities to further enhance organic growth, and are pleased by the progress we are making with our convenience store refresh trial," added Miller.
"Customer feedback has been positive and the early performance has been very strong, with significant sales uplifts and increased participation in key convenience categories, including fresh and chilled food."
McColl's operates 1,289 convenience stores across the UK. as well as 351 newsagents under the Martin's brand.
© 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.