McColl‘s has reported huge revenue rises, boosted by the acquisition of 298 former Co-op stores.
In its third quarter trading update, the convenience store retailer revealed a 31 per cent rise in revenue growth for the period and a 15 per cent revenue jump in the year to date.
Following the successful integration of nearly 300 former Co-op stores, which was completed in mid-July, the retailer saw like-for-like sales at its convenience stores and newsagents rise 0.7 per cent and 0.3 per cent respectively.
According to chief executive Jonathan Miller, the retailer‘s recent “groundbreaking” deal with Big 4 grocer Morrisons, which will see it stock Morrisons‘ Safeway brand, is expected to further its growth.
READ MORE: Morrisons & McColl‘s strike supply deal that could generate £1bn
“This has been a significant quarter for McColl‘s with the integration of all 298 of the acquired convenience stores completed and the announcement of a groundbreaking new supply partnership with Morrisons, beginning in January 2018,” he said.
“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.
“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.
“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.”
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