McColl’s has issued a profit warning after a “softer” Easter trading period.
The embattled convenience store chain said that it expects adjusted EBITDA to be no higher than the previous financial year, at £20m.
McColl’s said that it has experienced “mixed trading” since February 28, with a weaker Easter period as consumers spent less, and the business continued to be plagued by supply chain issues.
Its Morrisons Daily fascia performed better, with like-for-like sales up 20% compared with its non-converted stores.
The retailer said that it has converted 69 stores to Morrisons Daily so far this year, and is on track to continue its conversion programme.
McColl’s said in its statement that: “The move to convert stores to the Morrisons Daily format is fundamentally reshaping the business into a more profitable and sustainable model in the medium term.”
The retailer added that it is in active discussions with commercial partners and lenders, including Morrisons, to secure a financing solution and create a stable business going forward.
• Never miss a story – sign up to Retail Week’s breaking news alerts
No comments yet