McColl's Retail Group plc Morrisons Daily format extended to 450 stores (8041T)
29 November 2021 - 06:00PM
UK Regulatory
TIDMMCLS
RNS Number : 8041T
McColl's Retail Group plc
29 November 2021
29 November 2021
McColl's Retail Group plc
Morrisons Daily format extended from 350 to 450 stores within 12
months
McColl's Retail Group ("McColl's" or "the Company"), the UK's
leading community retailer, is pleased to announce that terms have
been agreed with Wm Morrison Supermarkets Limited ("Morrisons") to
extend the number of Morrisons Daily conversions from 350 to 450
stores. The Company expects to complete all 450 conversions by the
end of November 2022, compared to its previous target of 350 in the
same timeframe.
Morrisons is extending its support and increasing its
contribution to the enlarged conversion programme.
Morrisons Daily stores have a higher grocery mix and wider
breadth of product choice, driving enhanced customer spend,
frequency and loyalty. This stronger revenue performance, and a
return on investment towards the shorter end of a 2-3 year payback
range, underlines McColl's decision to broaden the Morrisons Daily
format across its community store estate.
Jonathan Miller, Chief Executive of McColl's, said: "Within 12
months we will have 450 stores open and trading as Morrisons Daily,
representing over a third of our total community store estate and
over half of our sales. These stores have a higher grocery mix and
wider breadth of product choice which is great for our customers,
and with strong sales growth and better return on investment, it is
great for the Company too. We look forward to continue working
closely with Morrisons in the years ahead."
Update on banking discussions
Our lending banks remain supportive, and discussions are ongoing
which are expected to conclude by the publication of full year
results in March 2022, at which point a further update will be
given.
In the meantime, agreement has been reached to defer a financial
covenant test due on 28 November 2021 to 31 December 2021, and
thereafter it is expected to roll on a monthly basis. This will
allow additional time for the Company to work constructively with
its lending banks in regard to the terms of agreement for the
upcoming financial year and the balance of the facility, which
matures in February 2024.
Next scheduled announcement
McColl's expects to publish a full-year trading update for the
52 weeks to 28 November 2021 on 8 December 2021, in which we will
also provide greater insight into the performance of the Morrisons
Daily format and an update on availability.
Enquiries
Please visit www.mccollsplc.co.uk or for further information,
please contact:
Analyst & Investors: Tej Randhawa, McColl's +44 (0)1277 372916
Media: Ed Young, Headland +44 (0)203 805 4822
Rob Walker, Headland mccolls@headlandconsultancy.com
Charlie Twigg, Headland
Notes to editors
McColl's is a leading community retailer, with an estate of c.
1,200 managed convenience stores and newsagents. We operate
McColl's and Morrisons Daily branded convenience stores as well as
newsagents branded Martin's across the UK, except in Scotland where
we operate under our heritage brand, RS McColl.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
LEI: 213800R1TLR536P8YJ67
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END
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