SUPERMARKET brand Safeway is set to make a return thanks to a new supply deal reached between McColl’s Retail Group and Morrison Supermarkets PLC.
The deal comes barely one week on from McColl’s announcement that it would retender its existing supply contract with Nisa.
McColl’s new arrangement will see Morrisons supply the convenience chains estate of 1,300 convenience stores and 350 newsagents with a range of fresh food and grocery products through the relaunched Safeway brand. As part of the deal, McColl’s will have exclusive rights to Safeway products for a period of 12 months.
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 a 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.”