Last checked at 1 Dec 2016 07:00
Q4 and Full Year Trading Update
1st December 2016 - McColl's Retail Group plc, one of the UK's leading convenience retailers, ("McColl's" or "the Group") today announces its trading update for the 13 and 52 week periods ended 27th November 2016.
SIXTH SUCCESSIVE YEAR OF SALES GROWTH AND TARGET OF 1,000 CONVENIENCE STORES ACHIEVED
Financial highlights:
Total revenue up 1.7% for the quarter and 1.9% for the full yearTotal like-for-like (LFL) sales1 down 1.7% in the quarter, a continued improvement on previous quartersFull year LFL sales down 1.9%, split as follows:LFL performance in recently acquired and converted stores2 up 0.8%LFL sales in premium convenience and food and wine stores down 1.0%LFL sales in newsagents and standard convenience stores down 3.3% On track to deliver full year results in line with expectations
Operational and strategic highlights:
Increasing market share
58 new convenience stores acquired during the year, bringing our total to 1,001 at the year-end 298 quality convenience stores acquired from the Co-op; integration planning progressing well and supply chain partner (Nisa) identified
Growing convenience product range
59 food and wine conversions completed this yearExcellent progress in our food-to-go offering, with 18 new units rolled out and 13 Subway outlets now in operation First pilot for mature store conversion successfully launched
Great customer service
559 Post Offices in operation by the end of Q4183 Amazon lockers now installed across the estate Contactless payment available in all stores, delivering an improved experience for customersLED lighting rolled out across the estate creating a better store environment and delivering an expected 35% reduction in lighting costs
Jonathan Miller, chief executive, said:
"I am delighted to announce that with the recent opening of our new Erdington store, we have achieved our target of operating 1,000 convenience stores by the end of 2016. This is a significant milestone in our strategy to grow our neighbourhood presence and serve more McColl's customers.
"As we announced in July, we will accelerate our convenience store openings in 2017 with the transformational acquisition of 298 stores from the Co-op. Our integration planning is progressing well and we are on track to begin the conversion programme in January. We are working closely with the Competition and Markets Authority and expect them to announce their findings by 23rd December.
"The business has traded robustly in the final quarter with total sales for the full year up 1.9% and we expect our overall financial performance for the year to be in line with the Board's expectations."
McColl's supporting communities at Christmas
McColl's colleagues are now gearing up for the festive season, making sure we have everything our customers need from their neighbourhood shop this Christmas. We expect our 559 Post Offices, most of which are now operating with extended opening hours, to be busier than ever. Our internet parcel services - now comprising 183 Amazon lockers and 676 Collect+ points - will also play a crucial role in delivering those anticipated Christmas gifts in time for the big day. Additionally, over 650 of our stores will be open on Christmas Day, ready to provide our customers with those last-minute essentials.
Our Preliminary Results for the 52 week period ended 27th November 2016 will be released on 27th February 2017.
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.
2 LFL sales in stores acquired or converted between 2014-2015 which have traded for over 12 months
Enquiries
Please visit www.mccolls.co.uk or for further information, please contact:
McColl's Retail Group plc Media enquiries:
Jonathan Miller, chief executive Headland
Simon Fuller, chief financial officer Lucy Legh, Simon Burton, Rob Walker
+44 (0)1277 372916 +44 (0)20 3805 4822
McColls@headlandconsultancy.com
About McColl's Retail Group
McColl's is a leading neighbourhood retailer in the independent managed sector running 1,375 convenience and newsagent stores. We operate 1,001 McColl's branded UK convenience stores as well as 374 newsagents branded Martin's, except in Scotland where we operate under our heritage brand, RS McColl. In addition we are also the largest operator of Post Offices in the UK.