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Acquisition spree pays off for McColl's

McColl's Retail Group saw revenues rise 7.6% to £504.8m during the first half of the year after acquiring 298 new stores from the Co-op.

McColl’s saw its total revenues for the 26-week period ended 28 May 2017 increase by 7.6% to £504.8m, compared to £469.2m for the same period last year.

The results were driven by the group’s recent acquisition spree which saw McColl’s acquire 298 new stores from the Co-op.

This means the firm now boasts 1,292 convenience stores and 358 newsagents’ - an 80% increase in convenience stores since its IPO in 2014.

Jonathan Miller, chief executive, said: "I am encouraged by the performance we have delivered over the first half of the year as our business has continued to gain momentum.

“We have traded well in a challenging environment and also benefited from the recent hot weather, which has helped to drive sales in key growth categories including grocery and alcohol.

"We are delighted to have completed the integration of the acquired stores, on time and on budget.

“We have welcomed over 3,500 new colleagues who have done a great job in supporting customers through the transition, and early trading is in line with our expectations.

“With all 298 stores now on board, they are expected to make a material contribution to sales and profit in the second half of the year and beyond.

"Our focus remains on enhancing our convenience proposition through growing market share, developing our product ranges and delivering excellent customer service.

"As the wider convenience and wholesale sector evolves and continues to grow, McColl's is in a strong position to benefit.

“We remain confident that our standing as a leading neighbourhood retailer will allow us to continue to achieve further progress against our strategy and deliver sustainable returns for shareholders."