Troubled convenience retailer McColl’s has reached the milestone of opening its 200th Morrisons Daily store following the latest conversion of a site in Stockport.
The rollout of Morrisons Daily stores, which offer a wider range of groceries and the supermarket’s own-label products, is a key part McColl’s strategy to boost sales and build a food-led convenience chain.
Following a pause over the Christmas and New Year period, the group has opened 31 Morrisons Daily stores this year with a further seven set to be converted next week.
Converted stores are claimed to deliver like-for-like sales growth that is at least 20% better than non-converted, comparable stores, with a 2-3 year payback on investment. McColl’s stated that it remains on track to complete 450 Morrisons Daily store conversions by the end of its current financial.
“We are extremely pleased to reach the milestone of 200 Morrisons Daily stores,” said Jonathan Miller, Chief Executive of McColl’s, “The Morrisons Daily stores are fundamentally reshaping our business into a more profitable and sustainable model in the medium term, as well as providing customers with access to a wider range of products, greater value and a supermarket-quality fresh food and grocery offer. “
At the end of last month, McColl’s was forced to issue a response to press speculation that it needed to raise capital within weeks or risk collapsing into administration.
NAM Implications:
- If converted stores are achieving a 20% improvement…
- …then McColl’s NAMs should anticipate a fast roll-out.
- And given recent money issues, innovation will be top of mind at all levels in McColls.
- In other words, it is worth proposing innovative initiatives that contribute to conversions…
