Mccoll's Regulatory News (MCLS)

14 January 2016

McColl's Retail Group plc

January Trading Update

Ongoing store expansion programme fuels strong Christmas trading performance

McColl's Retail Group plc (the "group"), a leading neighbourhood convenience retailer, is today providing an update on trading for the 6 weeks to 10 January, 2016.

Financial Highlights

The group traded well over the Christmas and New Year period:

· Total sales were up by 3.3%, fuelled by our ongoing convenience store expansion programme.

· Like-for-like ("LFL") sales1 were slightly down by -0.7%, a 1.1% improvement compared to quarter 4 2015.

o LFL sales in premium convenience and food and wine stores were flat at -0.1%.

o LFL sales in standard convenience and newsagents were down by -1.8%.

o LFL sales were up by 25% in the food-to-go category.

Operational Highlights

As a leading neighbourhood convenience retailer, trading in McColl's is less seasonally volatile, with customers using stores to purchase everyday essentials throughout the year. However, we had a strong range and performance in key seasonal categories, including fruit & vegetables, greetings cards, gift cards, confectionery and alcohol. Each of these categories showed strong year on year LFL growth, many of them reaching record seasonal sales levels. In order to support our customers at this important time, on Christmas day we opened 623 McColl's convenience stores compared to 578 last year. This led to a record Christmas day sales performance for the group, when we served in excess of 130,000 customers.

We also continued to provide a broad range of supporting services to the neighbourhoods within which we operate, with 280,000 parcels handled through Collect+ in December. This service operated alongside our converted Post Office estate, where Post Offices were open for longer hours, enabling our customers to complete their essential Christmas posting and other services.

Finally, we are also pleased to announce that in the 6 week period we exchanged contracts on a further 9 store acquisitions, which will see the group exceed 900 convenience stores in the first quarter of 2016.

James Lancaster, Chief Executive, commented:

"I am encouraged by our trading performance over Christmas and New Year. Our strong sales have been driven by the continued focus on premium convenience stores, with the food to go offering going from strength to strength. I would like to thank all of our 18,142 colleagues, who worked incredibly hard over the festive period to offer great customer service, providing neighbourhoods with access to quality products and services at the most convenient times. I am also delighted to report us approaching 900 convenience stores, another important milestone on our journey to 1,000 convenience stores in 2016."

1 Like-for-like sales reflect sales from stores that have traded throughout the current and prior financial periods, and sales include VAT but exclude sales of fuel, lottery and mobile phone top-up.

- ENDS -

Please visit www.mccolls.co.uk or for further information, please contact:

McColl's Retail Group plc +44 (0)1277 372 916

James Lancaster, Chief Executive Officer

Jonathan Miller, Chief Financial Officer

Dave Thomas, Chief Operating Officer

Media enquiries +44 (0)20 7404 5959

Brunswick

Anita Scott

Cerith Evans

About McColl's Retail Group

McColl's Retail Group runs the UK's largest chain of managed convenience and newsagent stores. It has 894 McColl's branded UK convenience stores and 456 newsagents and variety stores branded Martin's except in Scotland where it operates under its heritage brand, RS McColl. Sales in 2014 were £922m, having grown by almost £250m in the last seven years.