McColl’s has reported a leap in sales in what boss Jonathan Miller hailed as a “significant quarter” for the group.
The convenience retailer posted a 31% spike in revenue year on year in the 13 weeks to August 27 as its third-quarter like-for-likes rose 0.7%.
The retailer’s sales were driven by a 2.6% rise in like-for-likes sales in stores that were recently acquired and converted stores.
McColl’s, which struck a “groundbreaking” wholesale deal with big four grocer Morrisons during the period, also completed the conversion of the 298 stores that it recently acquired from Co-op in its third quarter.
The convenience retailer refurbished three of its stores during the financial period and plans to refurbish 20 more by the end of the financial year.
The retailer posted a dip in half-year profits last month due to the costs of converting its recently acquired stores but said it is on track to achieve full-year results in line with expectations.
‘A significant quarter’
Miller said: “This has been a significant quarter for McColl’s with the integration of all 298 of the acquired convenience stores completed and the announcement of a groundbreaking new supply partnership with Morrisons.
“The 298 newly integrated convenience stores have driven strong revenue growth, and our existing estate has continued to perform well, delivering a second consecutive quarter of positive like-for-like sales growth.
“We continue to look at opportunities to further enhance organic growth, and are pleased by the progress we are making with our convenience store refresh trial.
“We’re delighted to have secured Morrisons as our long-term wholesale supply partner. We’re confident this partnership will significantly enhance our fresh food credentials and we expect a material sales and profit benefit in the medium term.”