Morrisons has revealed it expects to open thousands of Morrisons Daily stores, as the supermarket giant nears the 500 mark.
Speaking at The Convenience Conference this week, Morrisons wholesale director Paul Dobson said: “We will reach over 500 by 2023 and I would expect towards the end of next year, we can get on towards the next milestone.
“Ultimately our ambition is to have stores numbers in the thousands, not the hundreds, in the future and by adding more high-quality retailers we will build those numbers.”
There are currently 486 stores operating under the format across the UK and Channel Islands, in both convenience and forecourt. Morrisons Daily first launched in 2017 with Rontec.
“Across Great Britain, 35% of the population are now within a 10-minute drive from a Morrisons Daily, which we think is good progress since starting off in 2017,” Dobson added.
Joseph Sutton, Morrisons group online, wholesale and convenience director, who spoke alongside Dobson at the conference, explained the high demand for its Morrisons Daily format meant it was driving a need to invest in its distribution capacity.
The business recently opened a new depot in July in Wakefield that is now servicing 200 stores, with another set to open this year in the Daventry area.
Dobson also alluded to more partnerships launching under its new ‘Together with Morrisons’ concept over the coming weeks, that targets stores over 3,000 sq ft and champions local produce and suppliers.
“Our aim really is to leverage our manufacturing background that gives the local community access to those products,” he said. “These are then expertly blended, expertly merchandised and presented to that local community with some of the best local suppliers, providers, innovators in the area.”
Sutton added that the acquisition of McColl’s, which occurred after the 1,160-store convenience chain collapsed into administration in May, would strengthen its wholesale operation.
“It’s going to create more investment in this channel of the business. It’s going to mean more collateral that our partners can use, like planograms, access to EPoS systems, new supply chain facilities, or bigger buying of concessions, as well as more format development,” said Sutton.
“We’re very excited, and we’re so lucky to have bought the McColl’s business, but there’s lots of hard work ahead of us.”
The Competition & Markets Authority recently launched a ‘phase one’ investigation following Morrisons’ £190m takeover of McColl’s in May. It found that “overall, the deal would not harm the vast majority of shoppers or other business”. However it “has found competition concerns in 35 local areas where the two brands compete”.
The CMA gave Morrisons five working days to offer proposals to remedy the competition concerns. It would then take a further five working days to decide whether to accept the proposals, it said.
Morrisons is hopeful of averting a phase 2 CMA inquiry.
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