McColl’s warns on profit after weak Easter sales

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Photo: McColl’s

Convenience store chain McColl’s on Monday forecast tepid annual core profit after a weaker-than-expected Easter performance, dented by lower consumer spending and supply chain disruptions.

The company, which operates more than 1,100 convenience stores expects its full-year adjusted core profit to not exceed £20 million.

McColl’s added that a refinancing of the business could wipe out the value of its equity.

The group’s Morrisons Daily stores, however, continue to perform strongly, delivering like-for-like sales growth that is at least 20 per cent better than non-converted, comparable stores, and ahead of the total convenience market.

“The Morrisons Daily store conversion programme continues at pace with 69 stores opened in FY22 so far, and the group continues to work on the previously communicated programme of Morrisons Daily store conversions,” the business said in a trading update.

“The move to convert stores to the Morrisons Daily format is fundamentally reshaping the business into a more profitable and sustainable model in the medium term.”

All Morrisons Daily conversions in 2022 have benefited from the introduction of a Morrisons food-to-go proposition, offering customers a broadened range at a compelling price point.