Morrisons is bringing in enhanced terms for its independent retail partners as it continues to grow its convenience business.
The supermarket currently runs around 1,700 Morrisons Daily stores, with a large proportion of these being owned and operated by independent retailers.
From July, all of its independent retail partners will have the opportunity to earn up to a 6% volume rebate, rising from the prior cap of 1.5%.
The grocery giant has also reaffirmed its commitment to ensure that the wholesale prices offered to its franchise retailers will always remain lower than the retail prices in its company owned Morrisons Daily stores.
In addition, its partners will be able to benefit from Morrisons own brand range, including its premium The Best range, offering shoppers a mix of own brand products alongside branded goods.
The business noted that its investment in its logistics network and Swan Valley site in recent months had led to the creation of a new dedicated ambient distribution centre, which it claimed had “materially enhanced” its ability to service its franchise customers.
Furthermore, over the summer, its independent retailers will become the first in the sector to have access to a supermarket loyalty scheme, as Morrisons More Card begins its phased launch.
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Director for wholesale convenience Paul Dobson said: “We have made significant strides in recent months to strengthen our Morrisons Daily proposition and set ourselves up for future growth.
“Our new and existing franchise partners are pivotal to our overall success and the team and I have been out and about listening to feedback from them and their customers, seeing first hand what is working well and what we need to improve on.
We’re excited to implement these enhanced terms for our independent retail partners and confident they will help us meet our ambitious growth plans for our Morrisons Daily estate.”
The retailer reported strong growth in its convenience arm during its half year results in June, with 42 franchise Morrisons Daily stores opening in the second quarter.
CEO Rami Baitiéh said he saw the “potential for hundreds more franchise-owned stores” as it expanded further “in the growing and fragmented convenience market”.
In June 2024, the brand set out to open 400 more Morrisons Daily shops in a bid to take on rival grocers Aldi and Lidl.
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