Convenience store chain McColl's has said current trading is down on last year in a market it calls "challenging and competitive."

The group, which has 1,317 outlets including 809 convenience stores and runs the RS McColl chain in Scotland, said like-for-like sales were down 1.2 per cent in the 13 weeks to March 1 amid continued pressure on consumer spending.

Overall, it said adjusted earnings rose by nine per cent to £37.3 million in the 53 weeks to November 30 as the firm opened new outlets and upgraded existing shops.

During the period the business, which floated last February, acquired 60 convenience stores, converted 45 newsagents to a food and wine format and upgraded a further 102 stores to its premium format.

The convenience stores allow it to carry a wider choice of chilled foods, groceries, fresh fruit and vegetables and helped it increase the size of its average basket spend across the group from £4.73 to £4.97 over the year.

The business, which employs more than 18,000 staff, reiterated it plans to have an estate of 1,000 convenience stores by the end of 2016.

But chairman John Coleman added: "Although economic activity across the UK is showing some signs of improvement, we are planning for continued pressure on consumer spending and an increasingly competitive convenience sector."

The business runs 451 post offices, making it the biggest operator across the UK. Its newsagents deliver newspapers to around 130,000 households.

Brokers at Numis said the firm's annual earnings "were slightly below our expectations".

The analyst added: "The current trading update shows further progress in terms of the store acquisition programme, although the industry backdrop suggests that the group may have to operate with negative like-for-like sales for some time."

McColl's was valued at £200 million when it listed on the London market last year, although it currently trades around 19 per cent below its 191p launch price.