McColl's reports 19% growth as convenience strategy continues to deliver

McColl
Symbol groups & wholesale RE McColls
Login or register to save this article

McColl's march into the convenience market is paying off with total revenue up 19.1% in the past year.

In its latest set of results, the company reported year-on-year sales growth of 0.1% in its convenience stores, compared to a 0.2% fall in its remaining newsagents. Sales in its 298 shops acquired from the Co-op in 2016 and recently converted stores rose 2.4% year on year. 

The chain has refreshed 25 shops this year and plans a further 100 in the coming year. 

Jonathan Miller, McColl's chief executive, said the company was well positioned to continue to take advantage of the growing convenience market. 

“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," he said.

McColl's added that around 700 of its 1,611 stores had been affected by Palmer & Harvey entering administration last week. It said it was in ongoing discussions with its supply chain partners, and manufacturers, with a contingency plan already in place to ensure continuity of supply. "Our priority is to minimise any potential impact on customers," the statement said. 

From today, Nisa will be providing McColl's with a short-term supply contract throughout the festive period. All of the 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. 

Arnu Misra, interim CEO of Nisa, said: “We have a highly flexible distribution model that enables us to scale quickly to members needs and as demand dictates. As a result, we will continue to manage both existing and new members without impacting our traditionally high levels of service, especially over the peak trading period.”

McColl's decision to partner Morrisons in August is believed to have lost Palmer & Harvey billions of pounds.

Want to see more news stories like this? Sign in to personalise your news feed to see only the stories that you want

Personalise your feed here
By Louise Banham Avatar
By Louise Banham 04 Dec, 2017

Comments

0 comments

Which category would you most like publishers to provide better promotional support for?

Make the most of betterRetailing.com

You know your shop better than anyone. Now you can decide exactly what news, advice and retailer case studies that you want to see to help you improve your business.

Subscribe to personalise your content Already have an account? Login