Shares in UK-listed retailer McColl’s fell sharply on Monday after the company revealed how the collapse of a major supplier was impacting sales.
McColl´s stock opened around 10% lower on Monday, though went on to recover much of the lost ground. As at 13.00 GMT, the stock was trading around 4% lower on the session.
“Having experienced some availability issues towards the end of FY17 in our c.700 newsagents and smaller convenience stores supplied by Palmer & Harvey (P&H), their entry into administration on 28 November 2017 has led to further disruption during the early part of FY18,” said McColl´s in its annual results on Monday.
Like-for-like sales for the 11-week period ended 11 February 2018 were down 2.2%, with stores formerly supplied by P&H seeing like-for-like sales decline by 3.6%.
This was despite a new short-term supply contract with Nisa that began in early December.