McColl's

Last updated

McColl's
Company type Public limited company
LSE:  MCLS
Industry Retailing
Founded1973;51 years ago (1973)
FateFolded into Morrisons, all stores converted to the Morrisons Daily brand
Headquarters
Brentwood, England
Number of locations
Approximately 1,100 shops (as of April 2022) [1] [2]
Key people
  • Karen Bird (Interim Chief Executive)
    Giles David (Chief Financial Officer)
RevenueIncrease2.svg £1.24 billion (2018) [3]
Decrease2.svg £18.3 million (2018) [3]
Number of employees
16,000 (2022)
Parent Morrisons
Subsidiaries RS McColl
Website McColl's

McColl's is a British convenience shop and newsagent operator, owned by the supermarket chain Morrisons and trading under the trading name Morrisons Daily. [4] [2] McColl's also operates post offices in several stores. [5]

Contents

History

Historic logo of McColl's McColl's logo.svg
Historic logo of McColl's

Martin McColl

In 1998, TM Retail (formally TM Group (The Mayfair Group)) acquired the Martin's and RS McColl's chain of newsagents. [6]

In 2006, TM Retail was renamed Martin McColl Limited after a management buyout, with the various stores rebranded as Martin's (for the news and variety stores) or McColl's (for the convenience stores) and the stores in Scotland retaining the RS McColl name. [7]

From 2009 to 2010, Martin McColl Limited replaced their existing EPOS system with a new multi-screen touch screen system.[ citation needed ] It was hoped this would speed up the transaction process by incorporating Credit/Debit card systems within the EPOS.[ citation needed ] The multi-screen system allows advertising POS to be electronically displayed to customers during the time that they are at the till. By 2011, an expansion for the new system had been developed, with the addition of built-in PayPoint terminals known as PPOD.[ citation needed ]

During 2012 to 2013, a barcode system was implemented to scan lottery tickets through the till making transactions more accurate and reducing the chances of human error.[ citation needed ] Martin McColl began another rebrand making the stores more appealing to customers and changed their POS format to go with the new brand.[ citation needed ]

In March 2013, Martin McColl's implemented a company-wide change in the colouring of SEL's and POS, opting for 'ivory' SEL strips and a mixture of block-coloured red and white POS material.[ citation needed ]

In August 2013, the group changed its name from Martin McColl Retail Group to McColls Retail Group. [8]

The company was floated on the stock market in January 2014. [9] In July 2016, wholly owned subsidiary, Martin McColl Ltd, announced it would acquire 298 shops from The Co-operative Group (subject to Competition & Markets Authority approval) for £117 million, this meant they entered Northern Ireland for the first time, but it was short lived as all of the stores are now Spar franchises. [10] In 2022, McColl's was placed in voluntary administration and purchased by Morrisons. [11]

Morrisons takeover

After having Morrisons' Safeway brand [12] on around 400 product lines in over 1,300 stores since January 2018, [13] [14] [15] McColl's decided to take the wholesale agreement further by having 350 of their convenience stores rebranded from McColl’s to Morrisons Daily. [16] [17] The first rebranded stores were operating at the start of 2021, with the 100th rebranded store opening in Ellesmere Port in October 2021. A total of 185 stores had been converted to Morrisons Daily by the end of 2021. McColl's hoped to have 350 shops trading under the new format by the end of 2022. [18]

In 2021, McColl's raised £30m to invest in the expansion of its Morrisons Daily convenience stores. The income of the convenience stores had been reduced by the coronavirus pandemic. [19] McColl's was reported to have £170m of debt by BBC News , while The Guardian reported a lower figure of £100m of debt. [20] [21]

On 6 May 2022, McColl's was reported to be on the verge of financial collapse. The retailer said it was "increasingly likely" it would fall into administration unless a rescue deal were successful. [19] The company reported that it would "be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees". [19] Earlier in the week, the listed company warned that its shares would be suspended as it was not able to meet the deadline for filing its annual results. [19]

On 6 May 2022, it was announced that the company would enter voluntary administration after talks with Morrisons about a rescue deal failed. PricewaterhouseCoopers was appointed as administrator. [22] At the time of the announcement, the McColl's website listed a total of 1149 stores, with 755 branded McColl's, 270 branded Morrisons Daily, 116 branded Martin's and eight branded RS McColl. [23] On 9 May, Morrisons agreed terms with the administrator to acquire McColl's in a pre-packaged insolvency arrangement. [11]

On 30 May 2022, the Competition and Markets Authority (CMA) announced it was launching an investigation into Morrison's acquisition of McColl's due to competition concerns, ordering Morrison's to run McColl's as a separate company while the investigation is being carried out. [24] [25]

On 13 July 2022, the CMA announced it had launched a formal investigation into Morrison's acquisition of McColl's. [26] On 15 July 2022, Morrison's announced it had agreed to rescue McColl's pension scheme following the acquisition. [27]

On 9 September 2022, the CMA announced it had largely cleared Morrison's acquisition of McColl's, raising concerns in 35 local areas where both brands would face reduced competition if the takeover went ahead as planned. Morrisons was then given five days to offer proposals to the CMA to address the concerns identified. [28] On 23 September 2022, Morrisons said it was offering to divest the overlapping convenience stores to ease the CMA's concerns, which the CMA said it would accept. [24] [29]

On 10 October 2022, Morrisons announced it planned to sell 28 McColl's stores (26 stores in England, 1 store in Scotland and 1 store in Wales) to a purchaser or purchasers approved by the CMA due to competition concerns. The CMA said it was consulting on the proposals for selling the stores. [30] [31]

On 27 October 2022, the CMA announced it would not be escalating its investigation and had cleared Morrisons' acquisition of McColl's, accepting Morrisons' plan to sell 28 McColl's stores. [32] [33]

On 1 November 2022, Morrisons announced it would close 132 loss-making McColl's stores (putting 1,300 jobs at risk) over the remainder of the year, and convert the remaining McColl's stores into Morrisons Daily stores within the next two to three years, bringing the number of Morrisons Daily stores to more than 1,000. Morrison's convenience, online and wholesale director Joseph Sutton will take charge of McColl's from McColl's interim CEO Karen Bird and CFO Giles David. Affected employees will be offered jobs in other local Morrisons stores or other parts of the Morrisons business. [34] [35]

Criticism

In November 2014, after a number of robberies in Wirral, including one in which a manager was knocked out, McColl's was fined £150,000 and ordered to pay £78,000 prosecution costs for failing to protect its staff. [36]

In August 2021, McColl's was "named and shamed" by the UK government for not paying workers the minimum wage. [37]

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References

  1. ↑ "Home". McColl's Retail Group. Retrieved 4 October 2019.
  2. 1 2 "About Us". McColls. Retrieved 9 May 2022.[ dead link ]
  3. 1 2 "Annual Report and Accounts 2020". McColl's Retail Group. Retrieved 9 May 2022.
  4. ↑ Addy, Rod (8 April 2006). "TM puts c-stores under single McColl's fascia". The Grocer . Retrieved 9 May 2022.
  5. ↑ "In-Store Services". McColl's. Retrieved 9 May 2022.[ dead link ]
  6. ↑ "About Us". McColl's Retail Group. Retrieved 13 May 2022.
  7. ↑ "TM Retail rebranded". Talking Retail. 1 June 2006. Archived from the original on 17 September 2012. Retrieved 9 May 2022.
  8. ↑ Brooks, Beth (2 August 2013). "Martin McColl's changes name to McColl's to reflect convenience focus". The Grocer.
  9. ↑ Wood, Zoe (27 January 2014). "McColl's top managers in line for £180m fortune from flotation". The Guardian . Retrieved 9 May 2022.
  10. ↑ "Acquisition of 298 stores from the Co-Op". London Stock Exchange . Archived from the original on 31 October 2016. Retrieved 9 May 2022.
  11. 1 2 Partridge, Joanna; Jolly, Jasper (9 May 2022). "Morrisons wins race to buy McColl's ahead of Asda owners". The Guardian . Retrieved 10 May 2022.
  12. ↑ Armstrong, Ashley (1 August 2017). "Morrisons brings back Safeway in McColls wholesale deal". The Daily Telegraph . Retrieved 9 May 2022.
  13. ↑ "Rollout of Morrisons supply". McColl's Retail Group. Retrieved 9 May 2022.[ dead link ]
  14. ↑ "Safeway". McColl's. Retrieved 10 May 2022.[ dead link ]
  15. ↑ Patel-Carstairs, Sunita (1 August 2017). "Safeway is coming back! Morrisons revives supermarket brand after deal with McColl's". Sky News . Retrieved 10 May 2022.
  16. ↑ Casci, Mark (1 March 2021). "300 McColl's stores to be rebranded as Morrisons Daily within three years as grocers extend supply partnership". The Yorkshire Post . Retrieved 10 May 2022.
  17. ↑ Fortune, Aidan (12 August 2021). "McColl's to focus on Morrisons Daily offer". Convenience Store. Retrieved 10 May 2022.
  18. ↑ Nazir, Sahar (21 October 2021). "McColl's beats target to launch 100th Morrisons Daily store". Retail Gazette. Retrieved 10 May 2022.
  19. 1 2 3 4 "McColl's convenience store chain on brink of collapse". BBC News . 6 May 2022. Retrieved 6 May 2022.
  20. ↑ "Morrisons makes last minute bid to save McColl's". BBC News. 6 May 2022. Retrieved 6 May 2022.
  21. ↑ Butler, Sarah (6 May 2022). "Morrisons in last-minute attempt to rescue McColl's and 16,000 jobs". The Guardian. Retrieved 6 May 2022.
  22. ↑ "McColl's collapses into administration". BBC News. 6 May 2022. Retrieved 6 May 2022.
  23. ↑ "Store Locator". McColl's. Retrieved 7 May 2022.
  24. 1 2 "Morrisons / McColl's merger inquiry". GOV.UK . 30 May 2022. Retrieved 1 June 2022.
  25. ↑ Parr, Jacqui (30 May 2022). "Morrisons' £190m takeover of McColl's under probe by CMA". Retail Gazette. Retrieved 1 June 2022.
  26. ↑ Wright, Georgia (13 July 2022). "Competition watchdog CMA launches probe into Morrisons' purchase of McColl's". Retail Gazette. Retrieved 19 July 2022.
  27. ↑ Nazir, Sahar (15 July 2022). "Morrisons agrees to rescue McColl's £130m pension schemes following takeover". Retail Gazette. Retrieved 19 July 2022.
  28. ↑ Shrimpton, David (9 September 2022). "Competition watchdog largely clears McColl's takeover". Talking Retail. Retrieved 22 September 2022.
  29. ↑ Nazir, Sahar (23 September 2022). "Morrisons close to acquiring McColl's as it addresses CMA concerns". Retail Gazette. Retrieved 11 October 2022.
  30. ↑ "Morrisons' proposals provisionally clear way for McColl's deal". GOV.UK. 10 October 2022. Retrieved 11 October 2022.
  31. ↑ Wright, Georgia (10 October 2022). "CMA clears way for Morrisons' McColl's takeover". Retail Gazette. Retrieved 11 October 2022.
  32. ↑ Parr, Jacqui (27 October 2022). "Morrisons inches closer to McColls takeover as CMA gives green light". Grocery Gazette. Retrieved 27 October 2022.
  33. ↑ Nazir, Sahar (28 October 2022). "Morrisons' takeover of McColl's nears completion". Retail Gazette. Retrieved 28 October 2022.
  34. ↑ Nazir, Sahar (1 November 2022). "Morrisons to close 132 McColl's stores, 1,300 jobs at risk". Retail Gazette. Retrieved 1 November 2022.
  35. ↑ Parr, Jacqui (1 November 2022). "Morrisons to shut 132 McColl's stores, putting 1,300 jobs at risk". Grocery Gazette. Retrieved 1 November 2022.
  36. ↑ Stewart, Gary (14 November 2014). "McColls newsagents fined £150,000 for failing to protect staff in Wirral". Liverpool Echo . Retrieved 16 December 2016.
  37. ↑ "Pret, McColls and Welcome Break in minimum wage fail". BBC News . 4 August 2021. Retrieved 5 May 2022.
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