Q3 Trading Update
1 September 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 week period to 28 August 2016.
SOLID TRADING PERFORMANCE AND CONTINUED EXPANSION
Financial and operational highlights:
- Total revenue up 1.8% for the quarter and 2.0% year to date.
- Like-for-like (LFL) sales1 down 1.8% in the quarter.
- Year to date LFL sales down 2.0% split as follows:
o LFL performance in recently acquired and converted stores2 up 1.0%.
o LFL sales in premium convenience and food and wine stores down 1.2%.
o LFL sales in newsagents and standard convenience stores down 3.7% as a result of continued pressure on traditional categories.
- Convenience store expansion has further progressed in the year to date and continues to capture market share:
o 36 new stores acquired.
o 32 food and wine conversions completed.
o 953 convenience stores at the end of Q3.
o 550th Post Office opened in Q3.
o 8 Subway franchises opened to date.
- On track to achieve target of 1,000 convenience stores by the end of December 2016.
- Transformational acquisition of 298 convenience stores from the Co-op announced in July 2016.
Jonathan Miller, chief executive, said:
"2016 continues to be a year of significant progress in delivering our convenience strategy. This was particularly demonstrated by our transformational acquisition of 298 convenience stores from the Co-op announced on 13th July 2016. We are making good progress with the approvals and our preparations ahead of the transition of these stores during 2017.
Our total sales this quarter were up year on year by 1.8%, fuelled by our investment programme. Like for like sales were down by 1.8%, marking a slight improvement on the year to date trend. As a business we remain focussed on the key elements of our clear strategy: to increase market share, grow our convenience product range and deliver great customer service, which we are confident will cement our position as a leading neighbourhood retailer.
We continue to be on track to deliver results in line with the Board's expectations for the financial year, alongside reaching 1,000 convenience stores by the end of the calendar year."
Total group sales grew by 1.8% year on year in the 13 weeks to 28 August 2016, driven by our investment strategy. LFL sales were down 1.8% for the quarter, but held up better in food and wine and premium convenience stores than in standard convenience stores and newsagents.
The group continues to execute the key elements of its strategy, including:
- Increasing market share with 36 new convenience stores acquired. Store base at period end comprised 953 convenience stores and 417 newsagents.
- Growing convenience product range with 32 food and wine conversions completed; 8 Subway outlets now in operation; excellent progress in our Food to Go offering with 28 modules rolled out; and planning for mature store conversions progressing.
- Great customer service as we reached 555 Post Offices by the end of Q3 and we now also have 183 Amazon lockers across the estate.
In addition we continue to focus on self-help measures and cost control, an example of which is our energy efficient lighting programme with over 1,100 store installations now completed.
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.
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
This information is provided by RNS