McColl’s has announced it will be extending its supply partnership with Morrisons for a further three years to 2027.
The agreement will see the convenience store chain transitioning to becoming a food-led retailer, with greater access to Morrison’s brand and expertise.
Under the renewed partnership, Morrisons will supply the entire McColl’s estate of over 1,200 stores with a convenience range for a further three year period to January 2027.
Furthermore, this move represents an acceleration of the Morrisons Daily Format, with the supermarket chain converting 300 McColl’s stores to the Morrisons brand and likeness over the next three years.
In the 12 weeks to 21 February 2021, McColl’s reported a like-for-like sales increase of 7.9%.
Jonathan Miller, chief executive of McColl’s, said: “I am delighted to extend our partnership with Morrisons by a further three years, ensuring the continued supply of a supermarket-quality offer across our entire estate, as well as the planned conversion of additional Morrisons Daily stores.
“Today’s important milestone has been achieved with the welcome support of our banking syndicate, enabling us to execute our strategy to deliver sustainable profitable growth.”
David Potts, chief executive of Morrisons, 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.”