McColl’s revenues hit by delivery disruption

By David Shrimpton in Industry News 17th November 2021

Supply chain disruption has cut forecast revenues at convenience retailer McColl’s, the group said in a trading statement today (17 November).

The group had already warned in August that the disruption could affect its full-year performance and it said today that adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) would now be in the range of £20m to £22m.

Nevertheless, the group reported that its Morrisons Daily stores are still performing well and that openings are being accelerated.

On 12 October McColl’s opened is 100^th Morrisons Daily and it expects to have 150 in operation by the end of this month.

This should enable it to reach its target of 350 well ahead of the original date of November 2022.

Jonathan Miller, chief executive at McColl’s, said: “It is disappointing to see supply chain issues worsen through the second half, but external factors have not eased and continue to impact much of the UK economy.

“We are working collaboratively with our wholesale partner Morrisons to restore in-store product availability as quickly as possible.

“Despite these supply chain issues, I am delighted by the step-change we are witnessing in store performance from our Morrisons Daily conversions.

“This new format is showing strong sales growth and is delivering better return on investment than we expected.”