Convenience store operator McColl’s Retail has warned that its annual earnings will come in below expectations as a result of softer market conditions in the second-half of the year.
In a trading update for the year to 24 November, the group revealed that its total revenue was down 1.9%, due mainly to disposals as part of its “store optimisation programme”. Total like-for-like sales were unchanged, against a fall of 1.4% last year.
McColl’s adjusted EBITDA is now set to come in at £32m, marginally missing market expectations due to “unseasonable weather and lower consumer confidence”.
However, the group pointed to progress made improving its operations. This includes better on-shelf availability and advancement of its category review programme.
McColl’s has also been trialling new propositional enhancements such as a food-to-go format, last-mile delivery with Uber Eats and improved customer segmentation of its estate.
“While 2019 has been another challenging year for the business, we have made good progress against our goals of operational stability and good retail execution,” said Chief Executive Jonathan Miller.
“The fundamentals of the convenience channel are strong and we remain a resilient, profitable and cash generative business. We are confident in our plans to rebuild momentum in 2020, and look forward to providing a fuller strategy update at our Preliminary Results in February.”
