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Michael Barker

BY MICHAEL BARKER

@michaelbarker

Monday 1st March 2021, 12:24 London

Morrisons and McColl's extend partnership

Supermarket agrees deal that sees 300 McColl's c-stores converted to Morrisons Daily format, and wholesale supply tieup extended

Morrisons and McColl's extend partnership

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Morrisons and McColl’s are extending their wholesale supply partnership and switching more stores to a new convenience format.

The two sides announced that over the next three years, 300 McColl’s convenience stores are to be converted to the Morrisons Daily format. The stores will offer a full Morrisons convenience range and will be branded Morrisons Daily, but will continue to be owned and operated by McColl’s.

The rollout follows over 30 McColl’s-to-Morrisons Daily conversions in recent months. McColl’s said the Morrisons Daily stores have delivered the strongest like-for-like sales performance within its estate, driven by the higher mix of grocery sales, breadth of offer and value proposition.

In addition, Morrisons and McColl’s have extended their partnership by a further three years, with Morrisons now acting as McColl’s sole wholesale supplier through to 2027.

Morrisons said McColl’s has been an important customer since 2017, and during that time wholesale supply has grown quickly into a profitable business for the Bradford-based supermarket chain. It currently supplies over 1,200 McColl’s stores, including over 230 of its biggest c-stores.

Morrisons supplies McColl’s across all ranges, including branded products and the Safeway own brand, further development of which is planned in the coming months.

Morrisons' chief executive David Potts said: “Today’s agreement is another example of Morrisons extending the reach of our popular brand. In doing so, we are building a broader, stronger Morrisons for customers, and leveraging our existing assets to achieve capital-light, profitable growth.

“We are delighted to be further expanding our successful partnership with McColl’s and look forward to growing together for many years to come.”

Jonathan Miller, chief executive of McColl’s, added: “I am delighted to extend our partnership with Morrisons by a further three years, ensuring the continued supply of a supermarket-quality offer across our entire estate, as well as the planned conversion of additional Morrisons Daily stores.

“In Morrisons we retain a long-term partner with best-in-class sourcing and manufacturing capabilities and a leading convenience offer for the local neighbourhood communities we serve across the country.”

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