Morrisons extends deal with McColl’s as conversion plans ramp up

The partnership will continue for another three years and Morrisons will now be McColl’s sole wholesale supplier until 2027. Over the next three years, 300 McColl’s branches will be converted to the Morrisons Daily format.

The stores will carry a full Morrisons convenience range while being owned and operated by McColl’s.

The new rollout follows the conversion of 30 McColl’s stores in recent months, which have “consistently delivered the strongest like-for-like sales performance within the McColl’s estate” as a result of a higher mix of grocery sales, the breadth of offer and the value proposition.

Morrisons separately supplies approximately 1,200 McColl’s stores, including  230 of its biggest branches, which have been added in the last few weeks.

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.”

McColl’s chief executive Jonathan Miller said: “I am delighted to extend our partnership with Morrisons, 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.”