13th Jan 2015 10:32
LONDON (Alliance News) - Newsagent and convenience store chain McColl's Retail Group PLC Tuesday said it saw a "solid" trading performance over the Christmas and New Year period, with total sales growth of 4.7% year on year.
McColl's said that sales growth for the six-weeks to January 11 was achieved despite on-going pressure on UK consumers' disposable income. Like-for-like sales, which are from stores open more than a year, were down 0.9% year on year, a similar annual decline as the retailer suffered in its fourth quarter to end-November.
The company's total sales include VAT but exclude sales of fuel, lottery and mobile phone top-ups.
Unlike some other general retailer, McColl's doesn't show strong seasonal fluctuations in trading, as customers use its stores to purchase everyday essentials throughout the year.
"However, a range of seasonal products are available, including Christmas groceries and confectionery, greetings cards, gift wrap and gift cards... providing last minute shopping and essential services for our customers. Amongst the top sellers on Christmas Day were milk, cranberry sauce, stuffing, foil and batteries," the group said in a statement.
McColl's has been investing in the business in a combination of ways, including opening new stores, closing unprofitable ones, and converting others to "premium" stores by adding more groceries, particularly chilled and fresh foods. It had also been taking part in the Post Office?s modernisation programme, by converting a total of 191 existing post office counters into new post office models and by increasing the number of post offices within its own stores.
"Following the successful completion of McColl's Local and Main Post Office conversion project, Post Offices within the McColl's estate were open for longer hours over the period, extending the time available for our customers to complete their essential Christmas posting and other services," the company said.
"In the run up to Christmas the group also acquired its 800th convenience store," it added.
McColl's shares were trading 1.1% lower mid-morning Tuesday at 176.74 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Mccoll's