Convenience retailer McColl’s and Big 4 giant Morrisons have signed a major partnership deal which they expect to take wholesale supply sales to more than £1 billion in due course.
The agreement between the two retail brands will see Morrisons supply both Safeway products and national brands to McColl’s estate of 1300 convenience grocery stores and 350 newsagents across the UK.
With a phased rollout programme starting in January 2018, the new partnership will eventually replace all of McColl’s existing supply arrangements in time.
“This new partnership is a further example of Morrisons leveraging existing assets to access the UK’s growing convenience food market in a capital-light way,” Morrisons chief executive David Potts said.
“Wholesale supply will help make us a broader, stronger business.”
McColl’s chief executive Jonathan Miller said the deal was a “defining moment” for his business and builds on its transformational strategy to acquire more convenience stores around the UK.
“In McColl’s, Morrisons gain a long-term partner of significant scale with a growing neighbourhood convenience estate and in Morrisons we gain access to their best-in-class sourcing and manufacturing capabilities,” Miller said.
“This will enable us to provide our customers with the highest quality fresh food through the relaunch of the much loved and trusted Safeway brand.”