McColl’s has announced the sale of 100 newsagents because they are not part of its long-term business plan.
After a portfolio review of the 1,346 McColl’s stores, the retailer has decided to sell approximately 100 newsagents for no less than their asset value. McColl’s said the decision was part of an ongoing strategy to develop the business and focus on profitable stores.
“We have continued to make good progress in enhancing our offering and capturing growth in the convenience market,” said McColl’s chief executive James Lancaster.
“As we continue to grow our convenience store estate, we constantly review our wider store portfolio, and from this we have identified 100 newsagents that no longer align to our strategic objectives. The sale of these stores will generate funds that will allow us to invest further in profitable convenience stores.”
The closure of the stores is expected to be earnings neutral in 2016 and McColl’s will continue to convert many appropriate, profitable newsagents into convenience stores.