LIVELY niche retailer Morning Noon & Night showed yesterday that there
is scope in the sector, despite all the price cutting among big
operators.
Turnover was up 34% on the year, operating profits doubled, and the
Dundee group now has 19 stores trading.
Quite an achievement in only three years, with 275 people now employed
and still great scope for further expansion.
Yet the philosophy behind this business is quite simple: To put
grocery-based convenience stores in the heart of local communities,
taking the shops to the people. That stands supermarket trading on its
head.
Founded by three former Watson & Philip executives, Eddie Thompson,
Jim Urquhart and Fraser Mackay, M N & N got its first outlet in Aberdeen
and now has three in the city, four in Inverness, and others mainly on
the East coast but also in Glasgow and Kilmarnock.
They are all licensed and have newsagencies, trading seven days a week
and on average open for over 100 hours a week.
Gross turnover has risen from a first year #4.2m to #11.6m and results
have gone from modest losses to #120,000 net profit for the year to
end-March. Operating profit was up from #119,000 to #233,000.
Taking new stores into account there was a 'like for like' sales
increase of 14%, mainly coming from drinks, chilled foods and snacks.
Livewire Eddie Thompson summed it up as a year of consolidation, after
the first two years' fast expansion. That meant spending on refitting,
but still adding two outlets, with two more to open shortly.
He claimed that gross sales were now running at the rate of #13.3m pa,
basing this on first quarter trading, with a continued improvement in
the bottom line figure forecast.
M N & N backers 3i, Abtrust Scotland, and Bank of Scotland must be
well pleased with progress. Former Wm Low managing director Colin
Mitchell is a non-executive director, assuring a strong input of Dundee
retailing expertise.
In its statement the board reminded that when the business began it
was predicted that the grocery market would polarise, with multiples and
superstores taking a greater share but still leaving a healthy slice for
efficient grocery-based convenience stores.
That has certainly proved to be the case and M N & N's intention now
is to continue seeking further sites close to the communities served,
with the proviso now that only quality stores will be considered. In
other words the group is not getting into the numbers race.
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