McColl unveils store expansion plan

Mar 18 2013

Retailer Martin McColl is to create 150 new convenience stores over the next two years after completing a debt refinancing worth more than £100 million.

The expansion will give the group some 800 convenience stores as it faces up to increased competition from supermarket heavyweights in the smaller store sector.

Convenience stores already make up more than half of Martin McColl's 1,260 stores, making it the third-largest owner of such outlets in the country. The group, founded by Scottish footballer Robert Smyth McColl in 1901, also has 500 newsagents, having acquired rivals Forbuoys and Dillons in the late 1990s.

It has doubled the number of its convenience stores in the last seven years and plans to drive its latest expansion by snapping up independent stores and converting its own existing newsagents.

Finance director Jonathan Miller said the growth plans were made possible after the group defied difficult economic conditions to refinance its debt pile with £126.5 million in new loans.

He added: "This funding will help us to realise our ambitious growth targets within the UK convenience sector as we look to expand our existing portfolio. Combined with our strong financial performance, the refinancing provides us with a sound platform from which to achieve our potential."

The company racked up £845 million in sales for 2012, having grown by £165 million in the last six years.

Lloyds, Barclays, AIB, Santander, SEB and Caird Capital participated in the refinancing.

Morrisons recently announced plans to accelerate the rollout of its M Local smaller stores, which will help it close the gap on rivals Tesco and Sainsbury's in the fast growing convenience sector.

The supermarket chain has been slow to enter the convenience store race with only 12 M Local outlets, but in recent weeks it has snapped up 60 sites, including 49 former Blockbuster stores.