TRADING
FINANCIAL RESULTS MCCOLL’S
McColl’s to speed up Morrisons Daily rollout as losses grow The group has also raised £30m to accelerate the pace of rollout of Morrisons Daily stores.
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cColl’s has posted a statutory pre-tax loss of £5.9m for the six months to 30 May, up from a loss of £1.3m a year earlier.The retailer also said its revenue was down, falling by 5.3% to £572.7m in the six-month period, reflecting store closures. In addition, McColl’s reported a gross margin of 23.5%, down from 24.9% a year earlier, reflecting changing product mix due to different shopping behaviours during the pandemic, with lower sales of higher-margin impulse products. The retailer said its Morrisons Daily roll-out “We are confident that these temporary programme is running trading effects will reverse as restrictions ahead of expectations – ease and distribution returns to normal.” 25 new Morrisons Daily Jonathan Miller conversions were made during the period – 56 stores are cur- impacting overall margins. Alongside rently in operation. McColl’s said it is the impact that the industry-wide shorton track to complete 100 conversions age of delivery drivers has had on our by end of fiscal year 2021. product availability, we are confident Jonathan Miller, Chief Executive, that these temporary trading effects will commented: “Many of the changes in reverse as restrictions ease and distribuconsumer behaviour we have seen since tion returns to normal.” the onset of the pandemic have continThe group has separately raised £30m ued in 2021, with customers spending from a capital raising scheme to accelerless on impulse goods, but buying more ate its growth strategy, which it will use take-home and multipack products, to increase the number, and accelerate
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the pace of rollout, of Morrisons Daily stores from 56 to 350 by the end of the financial year ending November 2022. It will also use the funds to improve the grocery infrastructure in the Morrisons Daily sites by enhancing the standard of the refit and expanding the chilled offer in stores. Miller added: “Looking ahead, whilst the wider economic outlook remains uncertain, we have clear demand for our grocery-led convenience offer, and our focus in the second half will firmly be on the continued roll-out of the Morrisons Daily stores, to help drive sustainable, profitable growth over the medium term.”
