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Gloucestershire Business News

Convenience store chain shares tumble

Shares in McColl's have lost almost a third of their value, after the convenience store chain issued a profit warning following supply chain disruption.

The business has more than 1,500 convenience stores, including stores in Gloucester, Cheltenham, Lydney, Cinderford, Stroud, Cirencester and Tewkesbury.

McColl's said like-for-like sales were flat in its fourth quarter, with comparable sales over the 12 months down 1.4 per cent, as reported by Sky. It is now forecasting profits of £35m, compared to the £44m it was predicting in July.

The company was hit hard by the collapse of wholesaler Palmer & Harvey (P&H) last year, meaning it rushed into a new contract with Morrisons to provide Safeway-branded goods.

The speed of the transition created significant challenge for McColl's and is continuing to be challenging, even though the transition is now complete.

McColl's shares are almost 70 per cent lower this year.

Picture credit: Google - image capture January 2018

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