McColl’s posts strong full year sales growth
Convenience retailer McColl’s has seen its full year revenue edge up 3.2% to £1.26 billion after it benefited from strong demand generated by the Covid-19 pandemic.
In the 53 weeks to 29 November, like-for-like sales climbed by 12% driven by a strong performance in the alcohol, fresh food and tobacco categories.
The retailer posted an adjusted pre-tax profit of £1.1 million compared to £7.4 million in the previous year. On a statutory basis, it made a loss of £5.3 million.
Jonathan Miller, McColl’s chief executive, said: “Over the last 12 months we have seen strong like-for-like sales growth, driven by the positioning of our stores in key neighbourhood locations and our strong customer offer. Despite the operational challenges of the pandemic, we have made good progress on our customer-focused strategic change programme.”
During the period, McColl’s extended its wholesale partnership with Morrisons for a further three years to 2027. The retailer said this marked a significant milestone in its strategic goal of becoming a food-led convenience retailer.
Miller added: “I am delighted with the opportunity this brings to convert 300 stores to the successful Morrisons Daily format over the next three years. These stores will be particularly well suited to the changing customer dynamics that are resulting from the pandemic.”
Giving an update on current trading, McColl’s said it saw like-for-like sales growth of 8.8% in the 15 weeks to 14 March 2021 despite the ongoing operational challenges brought about by the pandemic.
Miller said: “Looking ahead to 2021, whilst uncertainties and restrictions remain, there is no doubt that the strategic importance of neighbourhood stores has never been greater, and we are well positioned to deliver for customers and shareholders, as we continue to enhance our convenience offer.”
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