McColl’s to extend Morrisons Daily format from 350 to 450 stores
McColl’s Retail Group has agreed terms with Morrisons to extend the number of Morrisons Daily conversions from 350 to 450 stores.
All 450 conversions to the format are expected to be completed by the end of November 2022, the same as for the previous target of 350.
McColl’s said Morrisons will provide an increased level of support due to the expanded number of stores.
Morrisons Daily stores offer a wider range of products compared to McColl’s stores. which McColl’s says has driven more customer spend, frequency and loyalty.
Jonathan Miller, chief executive of McColl’s, explained: “Within 12 months we will have 450 stores open and trading as Morrisons Daily, representing over a third of our total community store estate and over half of our sales. These stores have a higher grocery mix and wider breadth of product choice which is great for our customers, and with strong sales growth and better return on investment, it is great for the company too. We look forward to continue working closely with Morrisons in the years ahead.”
In an update on discussions with its lending bankers, McColl’s said the talks are ongoing and are expected to conclude by the publication of its full year results in March 2022.
In the meantime, an agreement has been reached to defer a financial covenant test due on 28 November 2021 to 31 December 2021, and thereafter the company expects it to roll on a monthly basis. McColl’s said: “This will allow additional time for the company to work constructively with its lending banks in regard to the terms of agreement for the upcoming financial year and the balance of the facility, which matures in February 2024.”
