27th Aug 2014 11:43
LONDON (Alliance News) - Newsagent and convenience store chain McColl's Retail Group PLC Wednesday said total sales were up 4.3% in the third quarter of its financial year, as it continued to expand its convenience store estate, and said it remains in line with expectations for the full-year.
The group has been investing in the business in a combination of ways, including buying up new stores, closing unprofitable ones, and converting others to "premium" stores by adding more groceries, particularly chilled and fresh foods.
McColl's said it will continue to do so, having already acquired 33 new premium convenience stores and converting 36 food and wine stores so far this financial year.
The company said sales grew by 4.3% year-on-year in the 13 weeks to August 24, driven by new store acquisitions, while like-for-like sales in the quarter were down 0.5% against strong Summer comparatives.
In the year-to-date, McColl's said sales are up 3.9%, and up 1.2% on a like-for-like basis, including VAT but excluding sales of fuel, lottery and mobile phone top-up.
McColl's now has a total of 771 convenience stores, representing 59% of the group's total store base of 1,298, and McColl's said it is on track to achieve its target of 1,000 convenience stores by the end of 2016.
The company is also taking part in the Post Office?s modernisation programme, by converting existing post office counters into new post office models, and by increasing the number of post offices within its own stores.
The Post Office is currently undergoing a huge modernisation programme, backed by significant investment from the UK government. It is introducing two new post office models - local style post office branches and main style post office branches.
McColl's said the modernisation of its Post Office network continues to progress very well and has so far been received positively by customers.
Shares in McColl's Retail were up 1.5% at 196.84 pence Wednesday early afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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