McColl’s has struck a wholesale supply partnership with Wm Morrison in a move that will help to revive the Safeway brand.
The convenience store retailer said that the six-year contract with Morrisons would cover its 1,300 convenience stores and 350 newsagents. Morrisons will provide a full range of products, including 500 lines of Safeway-branded products that will be exclusive to McColl’s for 12 months.
Jonathan Miller, chief executive of McColl’s, said that the deal would enhance its range and its fresh food and chilled food credentials, and added: “The agreement allows McColl’s to improve its commercial terms and simplify its operations as it migrates to a single wholesale partner for the entire estate.”
McColl’s partnership with Morrisons will bring an end its relationship with Nisa and Palmer & Harvey, the wholesalers that have supplied it for some time. The loss of the contract could be difficult for Palmer & Harvey, which has had to refinance and is looking to raise cash in a competitive market.