Mccoll’s posts 31pc rise in sales after integrating Co-op stores
CONVENIENCE chain Mccoll’s has recorded a 31pc rise in sales, helped by its acquisition of 298 Co-operative shops earlier this year.
The retail chain said that it had completed integrating the new stores by the middle of July, which had helped to bolster the business. Like-for-like sales, which measure shops open for more than a year, were up by 0.7pc during the three months to Aug 27. This was largely driven by 0.7pc growth at its 1,300 convenience stores and 0.3pc at its 350 older newsagent shops.
Mccoll’s recently signed a new supply deal with Morrisons in a move that will resurrect the Safeway brand, and mean the convenience chain will ben- efit from the supermarket’s fresh food offer and bigger purchasing power with consumer giants.
Jonathan Miller, chief executive, said: “We’re delighted to have secured Morrisons as our long-term wholesale supply partner. We’re confident it will significantly enhance our fresh food credentials.” Mccoll’s previously had contracts with Nisa and Palmer & Harvey, both of which are searching for new owners.
Nisa has entered into exclusive takeover talks with the Co-op after negotiations with Sainsbury’s came to a halt over competition concerns, while Palmer & Harvey could end up in the hands of tobacco giants Japan and Imperial Tobacco as it scrambles to raise at least £50m of new cash.
Mr Miller has previously revealed the chain could take a more acquisitive role in the consolidation frenzy sparked by Tesco’s £3.7bn takeover of wholesaler Booker. He told The Daily Telegraph he would be interested in buying Tesco’s One Stop convenience chain if competition regulators forced a disposal to clear the Booker deal.
Mccoll’s stock closed up 2.5p at 269p.