McColl’s Retail Group’s revenue increased by 2.3 per cent to £1.25bn for the full year ended 29 November.
The retailer said it has seen “strong demand” since the onset of the Covid pandemic, partly offset by store closures as part of its store optimisation programme. 179 stores closed in FY20, in line with the group’s strategy to increase focus on larger, more profitable, convenience stores.
Like-for-like sales also grew by 12 per cent driven by strong performance in BWS (beer, wine and spirits), fresh food and tobacco.
However, McColl’s said a change in shopping behaviour during the pandemic has resulted in “margin pressures due to a change in product mix”.
The retailer notes that its strongest performance was delivered through the Morrisons Daily format, with 31 trial stores in current operation.
Jonathan Miller, chief executive, said: “Since the onset of the pandemic, we have seen strong demand driven by our customer offer and the positioning of our stores in key neighbourhood locations. At the same time, we have faced significant COVID-19 related costs and our operating margins have been reduced by a change in customer behaviour and product mix.
“Despite the challenges of 2020, the pandemic has reinforced our confidence in our ongoing strategic change programme. The importance of neighbourhood stores has never been greater, and we are well-positioned to continue enhancing our convenience offer by further developing our partnership with Morrisons, and further improving the quality of our estate and our overall customer experience.”
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