British convenience retailer McColl's has posted a 2.7 percent drop in like-for-like sales for the first half, as supplies were hit after the collapse of UK wholesaler Palmer & Harvey (P&H) last year.
Total revenue, however, rose 19.2 percent to £601.7 million for the 26 weeks ended May 27, as it bought about 300 convenience stores in 2017.
Extraordinary Efforts
““I am incredibly proud of our team and the extraordinary efforts they have shown in dealing with one of the most challenging six months the business has ever faced,” said Jonathan Miller, McColl’s chief executive.
“During the first half we experienced unprecedented supply chain disruption following the collapse of P&H last November.
"This temporary upheaval has inevitably impacted sales and margin performance in the c.700 stores that were formerly supplied by P&H, and has also had knock-on effects on the rest of the estate.”
Morrisons Supply
Miller added that during the period, the group completed the transition of more than 1,000 stores to Morrisons supply, which was ahead of schedule, as well as relaunch the Safeway brand at McColl’s.
“The switch to Morrisons supply in the 1,300 stores intended for this year has been accelerated, and will now be completed in early August, ahead of schedule. At the same time we have relaunched the Safeway brand at McColl’s, providing our customers with a more competitive and higher quality food offer.
“We will therefore have a progressively stronger and simpler operational position with a more compelling offer as we move through the second half and into 2019.”
News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
