McColl’s sales still impacted by Palmer & Harvey collapse
Sales at convenience retailer McColl's have struggled to pick up for another quarter as the company still grapples with the collapse of wholesaler Palmer & Harvey.
The figures
Total revenue in the 13 weeks to 26 August was up 0.6 per cent, but like-for-like sales slipped 0.9 per cent due to continued supply chain disruption.
McColl's also agreed a clutch of sales and leasebacks, generating £10m in cash.
Why it's interesting
McColl's has repeatedly assured investors that it has the disruption caused by P&H's collapse under control. Its switch to the Morrisons supply chain has now been completed ahead of schedule, with 1,300 stores now transitioned.
Another 300 stores, which were acquired from the Co-op, are still on a contract with Nisa until 2020.
Although the disruption means comparable sales are still down, the company benefited from the hot weather this summer. Sunny days meant sales were up at the vast majority of grocers, as consumers picked up barbecue supplies.
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What McColl's said
Chief executive Jonathan Miller said: "The rapid rate of transition has been a fantastic achievement, being delivered in less than nine months, and in the face of unprecedented disruption in the sector and for our business.
"With our new supply chain partner in place, we can refocus on day-to-day operations, including improving availability and rebuilding trade in those stores most affected by the disruption, and I'm grateful for the continued effort from all of my colleagues."
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