CONVENIENCE store and newsagent retail chain McColl’s is to buy 298 stores from the Co-op, subject to shareholder and regulatory approval. McColl’s currently has 933 shops.
In a £117m cash deal described by McColl’s chief executive Jonathan Miller as “transformational” the stores, located across the UK, are, if shareholders and the Competition and Markets Authority agree, likely to begin transferring early in 2017 with transfers then proceeding at a rate of roughly 20 a week for around five months.
The average size of the stores being sold is just under 1800 sq ft. In 2015, the average weekly sales figure per store was around £22,800 and the average basket value was £4.98.
The McColl’s board said the Co-ops provide a strong strategic fit with its existing portfolio of 933 convenience stores based on turnover, size, store fabric, location and demographics, and would increase McColl’s exposure to the growth category of fresh and chilled food products.
