McColl’s has told shareholders that it has performed “marginally” below expectations, which the convenience chain blamed on poor weather, lower than expected consumer spending and the closure of some of its smaller format stores.

Despite the full rollout of its Morrisons supply deal and the opening of its first Morrisons Daily branded stores in the period from November 2018 to November 2019, total revenue fell by 1.9% while like-for-like sales were flat. The key measure, earnings before interest, taxes, depreciation and amortisation (EBITDA), was expected to be £32m, lower than expected.

McColl’s sales slump blamed on weather

Company chief executive Jonathan Miller said McColl’s Retail Group was making “good progress against our goals,” with its full year trading update highlighting improvements to availability, ongoing category reviews, new food-to-go format trials, partnerships with Uber Eats and new senior team members.

Miller concluded: “The fundamentals of the convenience channel are strong and we remain a resilient, profitable and cash generative business. We are confident in our plans to rebuild momentum in 2020.”

Investors were unimpressed. Share prices in the firm fell by as much as 7.2% following the announcement. In just two years, McColl’s Retail Group’s share price has fallen from £2.75 to £0.40 – an 85.5% fall.

McColl’s removes 41 stores as profits decline