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Retail

Morrisons Extends Wholesales Activities With Move Into Channel Islands

UK retailer Morrisons has announced that it will become a franchise and wholesale supplier to SandpiperCI, a group that operates some 43 mini supermarkets and convenience stores in the Channel Islands.

Most Sandpiper stores will be converted to Morrisons Daily outlets as part of the move, and will be supplied with own-brand as well as branded products.

Supply Agreement

In addition, Morrisons will supply Safeway and branded products to the remaining Sandpiper stores. All stores will convert to selling Morrisons-supplied products over the next year, the company confirmed.

"We are pleased to be announcing a partnership with a strong franchise partner in Sandpiper and the opportunity to bring Morrisons quality and value to customers in the Channel Islands,” commented James Badger, Morrisons wholesale director.

“As Morrisons becomes broader and stronger, our brand is becoming more accessible to more customers."

Analyst Welcome

Analyst Clive Black of Shore Capital has welcomed Morrisons’ move, saying that it will “further broaden the reach” of the Morrisons brand.

“Sandpiper will join Amazon (online), McColl's (neighbourhood convenience) and Rontec (forecourt convenience) in the Morrison wholesale customer base, very good work in a short period of time which cost
effectively broadens the reach of the Group's brand, in our view,” Black said.

He added that the additional volumes resulting from the Sandpiper deal should help “further improve a little the utilisation of Morrisons' food factories whilst expanding the business reach in a capital light manner.”

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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