// Morrisons signs £220m “sale and leaseback” deal to roll out its convenience store format

// The grocer will be able to convert McColl’s stores into its convenience store format Morrisons Daily

Morrisons has signed a sale and leaseback deal worth £220 million, which will speed up the rollout of its convenience store format.

The grocer will be able to convert McColl’s stores into its convenience store format Morrisons Daily, The Times reported.

Morrisons struck the deal with asset management firm Intermediate Capital Group, which will include contracts for seven of its distribution warehouses for up to 25 years.

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Morrisons is looking to convert almost 1,000 McColl’s stores and use a proportion of the cash to cut prices on selected products.

The grocer acquired McColl’s for £189 million in May, and almost 300 of the 1,100-strong estate are trading under the Morrisons Daily fascia.

“I am confident that McColl’s can, in the Morrisons family, once again become a growing, thriving and vibrant convenience business serving local communities across the UK,” Morrisons chief executive, David Potts said.