McColl's Retail Group plc Q3 Trading Update (6228I)
September 01 2016 - 1:00AM
UK Regulatory
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RNS Number : 6228I
McColl's Retail Group plc
01 September 2016
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 stores(2)
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 550(th) 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 13(th) 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."
Financial highlights:
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.
Operational highlights:
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.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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