McColl’s Q4 revenues impacted by supply chain disruption
Convenience chain McColl’s has said continued disruption to its supply chain has impacted its fourth quarter revenue.
In a trading update issued the morning, the retailer said its full year performance may fall short of expectations if the issues do not materially improve.
McColl’s said problems caused by the ongoing nationwide shortage of delivery drivers, labour shortages at distribution centres and a reduced supply of key products have intensified in its fourth quarter.
Jonathan Miller, chief executive of McColl’s, said: “It is disappointing to see supply chain issues worsen through the second half, but external factors have not eased, and continue to impact much of the UK economy. We are working collaboratively with our wholesale partner Morrisons to restore in-store product availability as quickly as possible.”
The retailer now expects full year adjusted EBITDA pre IFRS 16 to come in between the range of £20 million and £22 million.
Giving an update on the conversion of some stores to Morrisons Daily, the retailer said the pace of work has now accelerated and that it now expects to have over 150 Morrisons Daily stores in operation by the end of this month.
Miller added: “Despite these supply chain issues, I am delighted by the step change we are witnessing in store performance from our Morrisons Daily conversions. This new format is showing strong sales growth and is delivering better ROI than we expected. Our conversion programme is moving at pace, ahead of time and on budget, and we anticipate reaching 350 Morrisons Daily stores well in advance of our original target.”
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