McColl’s shares fall after ‘mixed trading’ report

McColl's store

McColl’s Retail Group has reported “mixed trading” since its last update on 28 February 2022.

The retailer said that while a recovery in trading performance had continued during the first half of March, it experienced softer trading through the Easter period, impacted by reduced consumer spending and continued supply chain disruption across the industry.

However, the retailer’s Morrisons Daily stores continue to perform strongly, delivering like-for-like sales growth that is at least 20% better than non-converted, comparable stores, and ahead of the total convenience market. All Morrisons Daily conversions in 2022 have benefited from the introduction of a Morrisons food-to-go proposition.

The retailer said the Morrisons Daily store conversion programme continues at pace with 69 stores opened in FY22 so far.

As a result of the challenges, the retailer now expects adjusted pre-tax earnings for the current financial year to be no higher than the level achieved in FY21.

The Group says it remains in discussion with its key commercial partners and lenders over a potential financing solution that would resolve its short-term funding issues. The retailer’s shares more than halved in value on the news.