Mccoll's Retail Share Discussion Threads

[loganair] 08/3/2019 10:12

In the back ground there is Estonia richest man who took a 10% stake in MCLS at around 275p per share.

[supercity] 08/3/2019 10:06

I am seeing 125p as to where this is heading but I wouldn't be too surprised to see behind the scene talks of a takeover being behind this weeks price movement

[thefartingcommie] 07/3/2019 17:03

fyi..

About McColl's Retail Group

McColl's is a leading neighbourhood retailer, with an estate of c.1,550 managed convenience stores and newsagents. We operate McColl's branded convenience stores as well as newsagents branded Martin's across the UK, except in Scotland where we operate under our heritage brand, RS McColl. Our dedicated colleagues serve five million customers every week, and we are the largest operator of Post Offices in the UK, with c.600 in-store counters/branches.

[wynmck] 07/3/2019 13:56

google......isyourlocalstoretheanswer
the post offices in McColls might prove a winner

[spectoacc] 05/3/2019 14:52

Medium future I'd say - wait to see if the roll-out is successful, convert some more, then swoop before the market has woken up to it.

[supercity] 05/3/2019 13:26

What are the chances of a full takeover from Morrison's some time in the near future

[thefartingcommie] 05/3/2019 12:46

fwiw....

was in our almost local Morrisons(Berwick upon Tweed) the other day...very impressed.The turn around has been seriously dramatic in a few years.Ken would would very happy.

[loganair] 05/3/2019 12:18

It seems Morrisons are trying out several ways to return to the convenience sector:

1. Selling Safeway products in McColl's supermarkets.
2. Rebranding several McColl's supermarkets as Morrison.
3. Setting up several Safeway supermarkets.

[volsung] 05/3/2019 11:38

Bought a few

[aleman] 05/3/2019 11:20

Another new development:

[cheshire man] 05/3/2019 07:38

SP responding nicely :-)

[loganair] 01/3/2019 17:14

Peel Hunt believe the move marks a "highly significant and highly positive development", noting that while the McColl’s fascia is popular and evolving, the switch to the Morrisons Daily fascia could "really help densities".

"This could just be the fillip McColl's shares need after a quarter or two in the doldrums: we are confident the trial will work and that the fascia will be rolled out to more stores," its analysts said.

Peel Hunt stated the rebrand might also gave McColl's a "real chance" to see its like-for-like revenues make progress again.

Although Peel Hunt noted results of the trials wouldn't be known for a while, the broker still felt the potential of the Morrisons Daily fascia could be significant and was capable of really moving the dial over the medium-term.

"This is a good opportunity to get behind the shares again, and one that we hadn’t seen emerging in the short term," concluded analysts Jonathan Pritchard and John Stevenson.

[aleman] 01/3/2019 16:15

investors.co.uk/companies/news/215606/mccolls-surges-as-peel-hunt-upgrades-to-buy-in-vote-of-confidence-in-morrisons-product-branding-trials-215606.html

McColl’s Retail Group PLC (LON:MCLS) has been upgraded to ‘Buy’ from ‘Hold’ by broker Peel Hunt as analysts saw a trial to sell Morrisons-branded products at 10 of its stores as “a highly significant and highly positive development”.

In a note to clients, the broker said the trial, in which the supermarket chain would stock Morrison’s own-brand products, “could really help densities” and that it was confident the trial would work and be rolled out to more stores

... The broker also maintained its target price of 80p on the stock, saying that for “a highly operationally and financially geared business” a wider rollout following the trial could be “gold dust”.

[alphorn] 01/3/2019 15:24

Could be a smart niche for the business?

[loganair] 01/3/2019 15:17

Looking forward, on the surface this all seems very positive news for McColl's.

[loganair] 01/3/2019 15:01

The potential significance of McColl's Morrisons Daily rebrand is huge:


The potential significance is huge. Could McColl’s convert all 1,600 stores to the Morrisons fascia? Probably not any time soon, but as it’s learned with its acquisition of Co-op stores, the McColl’s brand isn’t strong.

Equally significant is that McColl’s will be selling Morrisons’ own brand in the trial stores rather than the Safeway range Morrisons developed for its wholesale customers, which is in the majority of McColl’s stores.

Opinion: McColl’s turnaround can finally begin.

If this proves more of a hit than Safeway, it should look to roll it out across the estate. The Morrisons name has greater resonance with shoppers than Safeway and we seem to be getting used to retailers selling their own label in other stores.

The Co-op hasn’t developed a different sub-brand for Nisa and Costcutter, it’s seeing the value of scaling up the Co-op brand. Even M&S is now considering selling Ocado products in its stores. So surely selling Morrisons own brand in 1,600 McColl’s stores could do both the power of good.

[cheshire man] 01/3/2019 14:25

May be some interesting times ahead :-)

[aleman] 01/3/2019 10:33

You would have thought Morrisons would buy a small stake to protect their interests while they trial getting as much of their own fresh and manufactured products into Mccolls as possible. Finding the right displays and products to get the highest margins would take a while but the jump in profit margins for Morrisons compared to McColls stuff bought through wholesalers could be huge.

Morrisons operating cashflow around £800m. Market Cap £6bn

McColls operating cashflow around £70m. Market Cap £70m
McColls operating cashflow with Morrisons takeover margins - £100m? Market Cap ???

[loganair] 01/3/2019 09:50

I posted a year ago when McColl's deal with Morrison to sell Safeway food was announced, that if all goes well after a couple of years Morrison may decide it is worth them buying McColl's.

It seems to me, that Morrison's are slowly moving in this direction.

I think Morrison would also like to see McColl's divest themselves of many more of their Newsagents before making any possible move on McColl's. At the rate McColl's are doing so, it will take them around 5 years to divest 50% of their estate of Newsagents as they seem to be divesting their newsagents at a rate of around 30 a year.

[loganair] 01/3/2019 09:39

The national convenience retailer McColl's will convert 10 of its stores to the Morrisons Daily fascia. The first of these stores, located in Bolton, will re-open in late April after a 10-day refit.

In line with other stores now being franchised under the Morrisons Daily fascia by the likes of Rontec, these 10 McColl's stores will be supplied with Morrisons private label lines rather than the Safeway products that feature in the McColl's badged stores.

With Morrisons now acting as the wholesale supplier to 1,300 stores in McColl's wider estate, the opportunity for McColl's draw on the Morrisons brand credibility is clearly one way to further enhance its progress towards repositioning its stores with a fully-fledged grocery convenience offer. For Morrisons the opportunity is to further extend its brand in a market sector where currently it has a limited presence.

[spectoacc] 01/3/2019 09:23

Thanks @Skinny, had assumed it was an IC mention, being a Friday. Needs a target price higher than that..

[skinny] 01/3/2019 09:19

Peel Hunt Buy 58.20 80.00 Upgrades

[spectoacc] 01/3/2019 09:18

Not much volume behind it, but has a "seen the bottom" feeling. IMO. Maybe.