McColl’s full-year results to be in line with expectations
Newsagent and convenience chain McColl’s saw its total group sales grow by 2.7% its fourth quarter with the increase driven by new store acquisitions. The group said its full-year results are likely to be in line with expectations.
In the 13 weeks to 29 November, like-for-like sales were down 1.8% although this was an improvement on the 2.3% fall seen in the third quarter.
The results mean that full year like-for-like sales were down 1.9% compared to the previous year. Total sales grew by 3.1%.
McColl’s said its performance in the premium convenience and food and wine estate held up well at 0.6% down for the year as it pursues its strategy of focusing on the convenience sector.
In line with its plans for the year, the group acquired 60 convenience stores and converted 45 newsagents to the food and wine format. The group now operates 893 convenience stores, which represents two thirds of its store base, and remains on track to achieve the target of 1,000 convenience stores by the end of 2016.
McColl’s also expanded its food to go offer this year through the introduction of coffee and snacking modules in 115 stores and the installation of 33 full food to go modules. In addition, it opened its first Subway franchise during the fourth quarter in an existing petrol forecourt site in Tamworth.
This year 100 of the group’s newsagents had alcohol added to expand the range on offer. In the final quarter, the group decided to sell approximately 100 of its other newsagents which no longer fitted with its long term plans. The divestment is expected to be earnings neutral in 2016, and the funds generated will be used to invest in the group’s convenience offering.
James Lancaster, McColl’s chief executive, said: “I am delighted to report significant progress on our strategic initiatives for the financial year, continuing our expansion into convenience and capturing further market share. Whilst the sector continues to be challenging, total company like-for-like sales improved in the quarter, and have held up well in our developed convenience stores over the course of the year. We therefore expect results to be in line with the board’s expectations for the year.”
