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Retail

McColl's Warns Of Declining Sales In Case Of No-Deal Brexit

By Steve Wynne-Jones
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McColl's Warns Of Declining Sales In Case Of No-Deal Brexit

British convenience retailer McColl's warned of an 11% fall in sales in April and May if Britain leaves the European union without a deal, as customers migrate to new products and supply chains are disrupted.

However, the company said it does not expect Brexit to have a material impact on the business if the country manages to strike a divorce deal with the bloc.

Sales Performance

The group posted a 8.1% increase in revenue to £1.24 billion, however, if acquisitions are excluded, total like-for-like sales were down 1.4%, impacted by supply chain distribution following the supply chain distribution.

“Despite this disruption, we continued to make progress against a number of our key strategic plans,” said chief executive Jonathan Miller.

“We completed the rollout of 1,300 stores to Morrisons supply in less than nine months, which represents a considerable achievement and provides us with a more secure supply chain and a higher quality chilled and fresh offer. We also continued to invest in our estate, with 59 convenience store refreshes completed in the year and 11 new stores acquired.”

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Early trading in full-year 2019 has seen a sales ‘improvement’, the group said, with total like-for-like sales up 1.2% in the 11-week period ending 10 February.

News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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