Morrisons to become sole UK wholesale supply partner for McColl's
The supermarket will supply both Safeway products and national brands to 1,300 McColl's convenience shops and 350 newsagents across the UK. The new partnership is expected to replace all McColl's existing supply arrangements in time.
Morrisons will supply McColl's shops through a phased programme starting in January 2018. By the end of 2018, the supermarket expects total annualised wholesale sales to all of its partners to be in excess of £700 million, including tobacco.
Morrisons has been developing a new Safeway range since the end of 2016. It now comprises over 400 fresh, frozen and ambient food products. McColl's is to be given a one year period of exclusive access to Safeway products.
David Potts, chief executive of Morrisons, said: "We are very pleased to partner with McColl's, and look forward to developing a long and successful relationship together. We are also pleased to be reviving the Safeway brand which we know customers will enjoy.
"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. Wholesale supply will help make us a broader, stronger business."
Initially, Morrisons will supply aound 1,000 McColl's convenience shops and 350 newsagents, with the remainder of the McColl's estate migrating in due course.
Jonathan Miller, chief executive of McColl's, added: "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.
“This is a defining moment for McColl's and builds on the transformational deal we announced last year to acquire 298 high quality convenience stores."
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