U.K. Retailer McColl’s Tumbles as Supply Shortages Worsen
(Bloomberg) -- McColl’s Retail Group Plc, which runs more than 1,200 U.K. convenience stores, plunged as the company flagged worsening supply shortages ahead of the busy Christmas season.
The stock tumbled a record 33% on Wednesday morning, before paring losses later in the day. McColl’s lowered its earnings forecast for the year, citing a lack of drivers, understaffed distribution centers and a shortage of key products.
Retailers across the U.K. are facing a dire situation heading in December from supply chain issues caused by Brexit, a tight labor market and the end of pandemic-related restrictions. High profit-margin products, like beer and spirits, are some of the most affected, according to brokerage Peel Hunt.
“Christmas will not be a merry one here,” wrote analyst Jonathan Pritchard in a note. “This probably will not improve for the next six months.”
Shares of McColl’s, which works with wholesale partner Wm Morrison Supermarkets Plc, traded 16% lower at 15.1 pence as of 11:39 a.m. in London.
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