McColl’s has achieved annual revenues of more than £1 billion for the first time, boosted by the acquisition of 298 former Co-op stores.
In the convenience store chain’s combined fourth quarter and annual update, total revenue surged 28.9 per cent over 13 weeks ending November 26 while it jumped 19.1 per cent for the full year.
However, like-for-like sales edged down 1.1 per cent in its fourth quarter, impacted by a decline in traditional categories and unfavourable weather.
McColl’s added that like-for-like sales in its recently-acquired and converted Co-op stores were up 1.3 per cent in the same period.
On a yearly basis, like-for-likes at its newsagents dipped down by 0.2 per cent while its convenience grocery stores edged up by 0.1 per cent. This means McColl’s total like-for-likes grew marginally by 0.1 per cent.
“I am delighted to report another strong quarter of revenue growth,” chief executive Jonathan Miller said.
“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.”
The retailer added that it completed 25 convenience store refresh projects during its second half and there are plans to refit a further 100 shops in the new financial year.
McColls said it was on track to achieve results for the full year in line with management’s expectations, and also remained committed to the new wholesale partnership with Morrisons, which will see Safeway branded products sold exclusively at McColl’s from January.
In the advent of the collapse of major grocery wholesaler Palmer & Harvey, McColl’s has signed a new short term supply contract with Nisa.
This means that starting from the today, McColl’s stores previously supplied by Palmer & Harvey will receive ambient stock delivered through existing Nisa-supplied McColl’s stores for onward transfer by McColl’s teams.