McColl's Q3 total sales up amid expansion

Convenience retailer McColl’s Retail Group reported a rise in third-quarter total sales but a drop in like-for-like sales, as it said it is on track to deliver full-year results in line with the board’s expectations.

In a trading update for the 13-week period to 28 August, the group said total revenue was up 1.8% thanks to its investment programme, but LFL sales were down 1.8%.

LFL sales in premium convenience and food and wine stores were down 1.2%, while LFL sales in newsagents and standard convenience stores were 3.7% lower as a result of continued pressure on traditional categories.

LFL sales in recently-acquired and converted stores were up 1%.

In the year to date, the company acquired 36 new stores, bringing the total estate to 953 convenience stores.

McColl’s said it was on track to achieve its target of 1,000 convenience stores by the end of December.

Chief executive Jonathan Miller 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 13t July 2016.

“We are making good progress with the approvals and our preparations ahead of the transition of these stores during 2017.”

At 0927 BST, McColl’s shares were down 0.3% to 165.45p.