McColl’s revenue dips as stores close
Newsagent chain McColl’s has recorded a 1.8% revenue drop, after divesting 120 stores during its financial year.
The chain’s revenue fell to £1.2bn during the year ending 24 November.
Adjusted gross profit fell by 2.1% to £315.7m. After adjustments, the company incurred a statutory operating loss of £90.4m, compared with £15.9m profit in 2018.
Newsagent chain McColl’s has recorded a 1.8% revenue drop, after divesting 120 stores during its financial year.
The chain’s revenue fell to £1.2bn during the year ending 24 November.
Adjusted gross profit fell by 2.1% to £315.7m. After adjustments, the company incurred a statutory operating loss of £90.4m, compared with £15.9m profit in 2018.
The newsagent opened 10 convenience stores during the year, some of which were relocations. It stated it will “continue to explore opportunities to add new stores in 2020”.
However, 400-500 stores still required refurbishment.
The newsagent said it will also trial new ideas around layout, price, range, brand and cost in a small number of stores this year.
“Advanced” discussions with lenders are also ongoing, to amend and extend its existing debt facility.
Jonathan Miller, chief executive, said: “We have stabilised the business and refocused on retail execution in 2019, in line with our key priorities for the year. Against challenging trading conditions we have made good operational progress, while reducing debt and making appropriate levels of investment.
“Looking ahead to FY20, we are embarking on a strategic change programme, refining our model and better tailoring our offer to the customers and communities we serve, using the learnings to build the foundations for future growth.”
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