Alongside its year-end results yesterday, McColl’s revealed that it plans to shut as many as 330 stores over the next three to four years as it seeks to rationalise its estate to focus its activities in the faster-growing food convenience market.
McColl’s now has around 1,430 stores, having closed 120 newsagents and smaller convenience stores last year. As part of wider a “strategic change programme” aimed at boosting performance, Chief Executive Jonathan Miller said McColl’s would look to reduce its estate to an “optimal size” of 1,100.
This will mean further reductions to its chain of newsagents in favour of larger, convenience-focused stores that better meet the needs of modern shoppers. The reduction will be achieved via either closures or sales to third parties.
Proposed test stores will feature “optimised range, display and pricing and innovative food-to-go and last-mile delivery trials”.
Miller added: “It’s early days, but there are changes ahead on food-to-go at many stores, with growing opportunities in breakfast, coffee and hot food, and with the trial of a new format launched in our new Coventry store.
“Our recent trial with Uber Eats is another example of how we are evolving to meet the needs of today’s customers.”
Meanwhile, the group stated that its supply deal with Morrisons was bedding in well, with strong on-shelf availability. It is extending its trial of Morrisons Daily fascias from 10 to 30 with the additional conversions set to be completed in the coming weeks.
The retailer said yesterday that 2020 will be a “transitional year” as it implements its improvement programme, which will also focus on overhauling its product offer and operating model.
McColl’s highlighted that sales in its new financial year had been “encouraging” with the group delivering a like-for-like sales improvement of 0.5% over 11 week period ended 9 February.
