Mccoll's Retail Share Discussion Threads

[bingham] 02/4/2019 16:38

AGM Tomorrow.
Not sure what time.

[aleman] 25/3/2019 14:25

This could be extra revenue and footfall from activation next month:

[loganair] 22/3/2019 15:07

hpgc - Morrisons failed with their convenience stores as many of them were ex-blocklbustor shops which were too small and often in the wrong place and paying very high rents.for them.

[win2003] 22/3/2019 15:02

Could have farther to go, perhaps. If it bounces off the up line then OK, but it's a narrow lane to follow. GLA


free stock charts from uk.advfn.com

[hpcg] 22/3/2019 15:02

Why would Morrisons buy McColls? They've tried convenience once and failed. Better for them to expand wholesale. The upside for McColls is a better product to compete for business where Sainsbury Local and Tesco Metro are absent.

[thefartingcommie] 22/3/2019 12:27

fwiw....I think the low trade is in now ....replicating the spike down to that level on March 11...and the reaction high on Jan 18...shld build from here...

[loganair] 22/3/2019 12:16

Even if Morrison took over McColl's at double their current share price, Estonia's riches man who paid around 275p per share for a 10% stake in McColl's will not be best pleased.

It seems to me Morrison's are taking the right approach by seeing how it goes with McColl's and how the differing offers resonate with customers best fits before making a bid to take over McColl's.

[thefartingcommie] 22/3/2019 12:03

Grocery
Opinion: Should Morrisons make a move for McColl’s?

Luke Tugby By Luke Tugby13 March 2019


Morrisons’ impressive turnaround under the stewardship of David Potts and Trevor Strain gathered further momentum today as it unveiled its full-year results.

Britain’s fourth-largest grocer posted an 8.6% uplift in pre-tax profit, excluding exceptional costs, to £406m for the 52 weeks to February 3. Group like for likes, which include the performance of its fledgling wholesale business, rose 4.8%.

To-date, chief executive Potts’ ‘fix, rebuild, grow’ strategy has focused on being more competitive on price and product quality, improving customer service, enhancing Morrisons’ localised proposition in stores, developing “popular and useful services” with partners such as Timpson and Doddle, and simplifying the structure of the business.

As part of Potts’ vision to “grow”, the development of Morrisons’ wholesale division – which supplies Amazon and McColl’s in the UK, Sandpiper in the Channel Islands and Thai grocer Big C – added £705m to the top line in 2018/19. The target is to drive that to £1bn annually.

On paper, at least, the combination of the two businesses would make sense on a number of levels

Today, Potts spoke of an emerging ‘new’ Morrisons – and said despite progress made so far it had “many sales and growth profit opportunities ahead”.

Morrisons remained tight-lipped on what those might be, but its ever-closer relationship with McColl’s could be a key avenue for both top- and bottom-line progression.

Morrisons already supplies all but 300 McColl’s stores with 250 Safeway-branded lines. That SKU count will increase to 400 later this year.

But the pair are now poised to pilot the conversion of 10 larger McColl’s stores into Morrisons Daily – the same franchise fascia Morrisons has established on 115 Rontec and MPK Garages petrol forecourts.

Could that signify the latest step in a longer-term Morrisons play to swoop on the McColl’s business? Potts was coy on the idea when asked by Retail Week this morning.

He would only describe the existing tie-up as “an important partnership”, adding: “Like most things in retail, whether there is any progress made on any more franchise Morrisons Daily stores through our partner McColl’s will be in the hands of consumers.”
C-store reboot

On paper, at least, the combination of the two businesses would make sense on a number of levels.

First, Morrisons has had no high street c-store presence since Potts offloaded its failed venture into the convenience market back in September 2015. Potts said at the time of the disposal that he would not rule out a return to the convenience market, but labelled the My Local portfolio as an “inconveniently located convenience business”.

Although its move on to petrol station forecourts has allowed Morrisons to rekindle a convenience offer of sorts, a combination with McColl’s would instantly thrust it into direct competition with businesses such as Tesco Express, Sainsbury’s Local and the Co-op in high-footfall and neighbourhood locations across the UK.

It’s likely an acquisition of McColl’s would get the green light from the relevant authorities without too much trouble

Second, while Morrisons would be alert to potential interference from competition authorities when mulling any kind of deal – particularly in the wake of the CMA’s provisional findings on the proposed Sainsbury’s-Asda merger – the watchdog would likely come to much more lenient conclusions.

The geographical overlap between Morrisons and McColl’s stores would be much less of an issue, especially in London and the South East, where Morrisons’ market share is minimal.

Indeed, Morrisons’ nationwide market share and buying power in grocery would not be boosted to anywhere near the same extent as Sainsbury’s-Asda’s would be, or raise the same CMA concerns about the adverse impact that clout could have on prices for consumers.

It is likely, therefore, that an acquisition of McColl’s would get the green light from the relevant authorities without too much trouble.
Smells like a bargain

Third, having already worked with McColl’s as a supply partner, Potts and Strain will be aware of where Morrisons’ Safeway offer is resonating with customers and how that has affected sales. That data will speak for itself when considering whether or not a McColl’s acquisition would represent a viable growth opportunity.

Last but certainly not least, McColl’s share price currently represents good value. Its market cap has slumped to under £90m after being hammered by the impact that the collapse of its former supplier Palmer & Harvey had on profitability.

The convenience specialist’s pre-tax profit tumbled 57% to £7.9m in the year to November 5, 2018, but total sales rose 8.1% to £1.24bn over the same period. Like for likes fell 1.4% as a direct result of supply chain disruption.

But Morrisons, as its new supply partner, will know all too well that those issues will soon be behind McColl’s. Both its bottom line and valuation should recover as a result.


At 77p, the McColl’s share price therefore represents something of a snip when compared to the 295p high it hit less than two years ago, in September 2017. Potts and Strain may well smell a bargain.

..........couldnt agree more..(fwiw)



If they do, Morrisons and McColl’s could prove to be much more than a marriage of convenience.

[loganair] 22/3/2019 11:42

win - Many thanks, I know were the article is, however as I'm not a subscriber I'm unable to read the rest of the article.

[win2003] 22/3/2019 10:28

Loganair, here it is:



Seems like a no-brainer for Morrisons, so what's keeping them? Suspect they know more than we do.

[lukehold] 21/3/2019 18:09

Will it drift down like foot until the offer comes in... or we get a trading update showing the difference when supply issues have been resolved... - holding long until either or both

[lukehold] 21/3/2019 18:08

Will it drift down like foot until the offer comes in... or we get a trafing update showing the difference when supply issues have been resolved... - holding long until either or both

[loganair] 13/3/2019 21:51

Retail Week - Opinion: Should Morrisons make a move for McColl’s?

Although its move on to petrol station forecourts has allowed Morrisons to rekindle a convenience offer of sorts, a combination with McColl’s would instantly thrust it into direct competition with businesses such as Tesco Express, Sainsbury’s Local and the Co-op in high-footfall and neighbourhood locations across the UK.


Anyone able to post the complete article???

[loganair] 13/3/2019 21:31

Buying McColl's will be a chaep option for Morrisons to gain over 1,200 convenience stores, minus 300 news agents.

[lukehold] 13/3/2019 21:19

Amazon are in the mix too, Morrison's currently supplying amazon fresh sales.

[spooky] 13/3/2019 17:46

Looking at it from the outside, surely it just has to be a matter of time before MCLS are taken out. MRW would be stupid to ignore it IMO.

[scobak] 13/3/2019 17:14

So how close are these two going to get?

[lukehold] 13/3/2019 16:12

Morrisons declares further special dividend as McColl's contract boosts full-year sales

[thefartingcommie] 13/3/2019 07:13

Kazoom..

to be fair though tfc, the quote you provide (where from btw?) has more than a little of the "cheap hack" about it.

....indeed...lol

This partnership has been so successful in fact that in the first half of 2018, the pair did enough to exceed annual wholesale targets of £700 million.

[thefartingcommie] 13/3/2019 07:10

.............After progressing our wholesale partnership with McColl's more quickly than initially expected, we achieved our target of £700m of annualised wholesale supply sales ahead of our initial end-2018 guidance. We expect to begin to supply McColl's remaining c.300 convenience stores towards the end of 2019, with some sales benefit likely from the second half. Our plan for £1bn of wholesale supply sales in due course remains unchanged.

[thefartingcommie] 13/3/2019 07:09

·https://www.investegate.co.uk/morrison-w-sprmkts--mrw-/rns/final-results/201903130700046656S/

Targets update

·


£700m annualised wholesale supply sales achieved ahead of end-2018 target

·


Expect to begin to supply McColl's remaining c.300 convenience stores towards the end of 2019, and still expect £1bn of annualised wholesale supply sales in due course

·


Further £12m incremental profit from wholesale, services, interest and online, taking the total so far to £54m. On track for our £75m-£125m target

·


Plan to trial converting ten McColl's stores to Morrisons Daily convenience stores

·


Net debt expected to remain at a low level, consistent with our capital discipline and the principles of our capital allocation framework

[newsboy1] 12/3/2019 21:49

With 300 Co-ops now surely to be rebranded Morrison's Daily and all the sales benefits that will bring,(return them to pre take over Co'OP sales levels?)the future is good. This is set to double in the next 6 months.

[thefartingcommie] 12/3/2019 19:06

I agree though there appears to be no suggestion that MRW are looking to back away from the deal or renegotiate it (given that they stepped in as the white knight they probably ensured that the terms were as they wanted in the first place)...


exactly my point.....

[kazoom] 12/3/2019 18:25

to be fair though tfc, the quote you provide (where from btw?) has more than a little of the "cheap hack" about it.

This partnership has been so successful in fact that in the first half of 2018, the pair did enough to exceed annual wholesale targets of £700 million.


Erm - that might be something to do with the fact that neither party forecast that McColls former supplier would go bust and that Morrisons would be called upon to ride to the rescue.

I agree though there appears to be no suggestion that MRW are looking to back away from the deal or renegotiate it (given that they stepped in as the white knight they probably ensured that the terms were as they wanted in the first place)

[thefartingcommie] 12/3/2019 08:32

scotch broth..

is this what you are referring to ..


Morrisons wholesale and online businesses

Over the course of its fiscal year, Morrisons wholesale business has been driving it forward, helping the company deliver 12 back-to-back quarters of like-for-like sales growth.

A major component in the success of its wholesale business has been its supply deal with convenience chain McColl’s. This partnership has been so successful in fact that in the first half of 2018, the pair did enough to exceed annual wholesale targets of £700 million.

In January last year, Morrisons was supplying just 25 of McColl’s stores across the UK. Unsurprisingly, given that the pair have smashed sales targets, the British supermarket chain is now supplying more than 1300 stores and plans to add the remaining 300 in due course.

The increase in sales volumes from the McColl’s partnership has spurred Morrisons to look at new supply deals, with the company agreeing terms with MPK Garages, a owner of petrol forecourts, as well as plans to export more than 100 own-labelled products to Big C stores in Thailand. Investors will be looking to see if Morrisons will announce any more details on these partnerships or any news of new supply deals struck with overseas stores.

if not.....elaborate...in any event it serves little purpose to lower yourself to the level of a cheap hack by posting ambiguous unsubstantiated one liners.