THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
The Papers
RETAIL INSIGHTS
RETAIL SOLUTIONS
• The HR Summit 2019
• AI in Retail Conference 2019
• Omnichannel Futures Conference 2020
• Future of Retail Marketing 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
McColl’s like-for-like sales fall following Palmer & Harvey collapse

McColl’s has reported a drop in first half like-for-like sales after facing one of its most challenging six-month trading periods. In the half year to 27… View Article

FOOD & DRINK

McColl’s like-for-like sales fall following Palmer & Harvey collapse

McColl’s has reported a drop in first half like-for-like sales after facing one of its most challenging six-month trading periods.

In the half year to 27 May total revenue climbed by 19.2% to £601.7 million after the retailer acquired 300 new convenience stores in 2017.

However, like-for-like sales were down 2.7% due to stock availability being impacted by supply chain disruption following the failure of wholesaler Palmer & Harvey. This meant a planned supply switch to Morrisons in the 1,300 stores intended for this year had to be accelerated and will now be completed ahead of schedule in August.

Pre-tax profit was £2.3 million compared to £4.5 million in the same period in the previous year following £3.5 million of downward adjusting items and £2.4 million of property profits.

Jonathan Miller, McColl’s chief executive, said: “I am incredibly proud of our team and the extraordinary efforts they have shown in dealing with one of the most challenging six months the business has ever faced. During the first half we experienced unprecedented supply chain disruption following the collapse of P&H last November. This temporary upheaval has inevitably impacted sales and margin performance in the c.700 stores that were formerly supplied by P&H and has also had knock-on effects on the rest of the estate.”

During the period, the company relaunched the Safeway brand at McColl’s to give customers a “more competitive and higher quality” food offer. It also made good progress towards making grocery its biggest sales category, which now represents 33% of sales.

The company said its sales performance had improved in the early part of the second half as it recovered from the supply disruption and benefited from better weather. Total like-for-like sales for the seven-week period ending 15 July were down 0.8%.

Due to the challenges faced in the first half, McColl’s now expects its 2018 full year adjusted EBITDA to be at a similar level to the prior year.

Miller added: “As the convenience sector continues to grow, we remain confident that our clear strategy will allow us to make further progress and deliver sustainable returns for shareholders.”

Stay updated with the latest retail news for free by subscribing to The Retail Bulletin mailing list.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Retail Marketing 2020
Future of Retail Marketing 2020
10 June 2020
Cavendish Conference Centre, London W1G 9DT
The Future of Retail Marketing for Customer Engagement