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Principale » Morrisons to revive Safeway brand under McColl's partnership deal

Morrisons to revive Safeway brand under McColl's partnership deal

01 Août 2017

Last November, Potts revealed that the company was developing a range of convenience products for wholesale to independent retailers, using the Safeway brand.

United Kingdom convenience group McColl's has announced an agreement with Morrisons, that will see the retailer supply select products to McColl's estate of 1,300 convenience stores and 350 newsagents.

Britain's fourth-largest supermarket, which acquired Safeway's United Kingdom operations in a £3bn deal in 2004, has struck an agreement with grocery chain McColl's, which will see the supermarket supply Morrisons and Safeway branded products to 1,300 convenience stores and 350 newsagents starting from January 2018.

As part of the long-term partnership, Morrisons will re-launch its Safeway brand, which McColl's will utilise exclusively for a twelve month period.

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By the end of 2018, the FTSE 100 company expects to see total annualised wholesale sales from all its wholesale partners, which includes Amazon, to be in excess of £700m including. tobacco. "We expect this new initiative to make an initial profit contribution in 2018/19, and increase thereafter", the retailer said. This prompted a 7.6 per cent rise in revenues. Under the terms of the deal, Morrisons will initially supply around 1,000 McColl's convenience shops and 350 newsagents. The new partnership will replace all McColl's existing supply arrangements in time.

Jonathan Miller, chief executive at McColl's, said: "In McColl's, Morrisons gains 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".

As of 13:34 BST, Morrisons' share price had added 0.71 percent to 242.10p, largely in line with the broader United Kingdom market, with the benchmark FTSE 100 index now standing 0.70 percent higher at 7,423.59 points.

"Wholesale supply will make us a broader, stronger business".

Morrisons to revive Safeway brand under McColl's partnership deal