McColl's Retail Group plc McColl's supply chain partnership with Morrisons (6575M)
01 August 2017 - 4:00PM
UK Regulatory
TIDMMCLS
RNS Number : 6575M
McColl's Retail Group plc
01 August 2017
McColl's agrees groundbreaking new supply chain partnership with
Morrisons
Release date: 1 August 2017
McColl's Retail Group ("McColl's"), one of the UK's leading
neighbourhood convenience retailers is pleased to announce that,
following a competitive process, it has reached an agreement for Wm
Morrison Supermarkets PLC ("Morrisons") to supply McColl's growing
estate of 1,300 convenience stores, and 350 newsagents.
This long-term partnership provides McColl's with a
best-in-class fresh food and grocery offer through the relaunched
Safeway brand, which it will enjoy exclusively for a period of 12
months. This will significantly advance McColl's fresh food
credentials and provide its customers with an enhanced range. The
agreement also allows McColl's to improve its commercial terms and
simplify its operations as it migrates to a single wholesale
partner for the entire estate.
Morrisons will supply both Safeway and branded products to
McColl's, with a phased rollout programme starting in January
2018.
Jonathan Miller, Chief Executive of McColl's, said:
"As a large, leading multiple grocery retailer with its own
outstanding food manufacturing capability Morrisons stands apart
from the competition, and we are truly delighted to be entering
into partnership with them. 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 will
enable us to provide our customers with the highest quality fresh
food through the relaunch of the much loved and trusted Safeway
brand. 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."
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."
[1] Initially Morrisons will supply c.1,000 McColl's convenience
stores and 350 newsagents with the remainder of the estate (the
c.300 recently acquired convenience stores) migrating in due
course.
Enquiries
Please visit www.mccolls.co.uk or for further information,
please contact:
McColl's Retail Group plc Media enquiries:
Jonathan Miller, Chief Executive Headland
Simon Fuller, Chief Financial Officer Lucy Legh, Simon Burton,
Rob Walker,
Naomi Kissman, Head of Investor Relations Ewa Lewszyk
+44 (0)1277 372916 +44 (0)20 3805 4822
Notes to editors
McColl's is a leading neighbourhood retailer with a growing
estate of 1,650 managed convenience stores and newsagents. We
operate 1,292 McColl's branded UK convenience stores as well as 358
newsagents branded Martin's, except in Scotland where we operate
under our heritage brand, RS McColl. In addition we are also the
largest operator of Post Offices in the UK, with approaching 600
in-store counters/branches.
Morrisons is a major grocery retailer with 491 supermarkets and
unique food maker skills, with thousands of colleagues in 17 food
manufacturing sites across Britain. Morrisons has been developing a
new Safeway range since the end of 2016. It now comprises hundreds
of fresh, frozen and ambient food products, many of which are made
in Morrisons food manufacturing sites.
This announcement contains inside information
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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