RS McColl owner to open 150 more shops

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

The group, founded by Scottish international footballer Robert Smyth McColl in 1901, trades under its historic RS McColl name north of the Border.

McColl ran the firm with his brother Tom while playing for Rangers, Queen’s Park and English side Newcastle United.

The expansion will give it some 800 convenience stores as it faces 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 also has 600 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 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 £845m in sales for 2012, up £165m in the past six years.

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

Morrisons recently entered the convenience store race with plans to accelerate the rollout of its M Local smaller stores to help it close the gap on rivals Tesco and Sainsbury’s in the fast growing sector.