Morrisons has revealed that it is introducing improved terms for its independent retail partners as part of the drive to grow its convenience business.
The group currently has around 1,700 Morrisons Daily stores – a large proportion of which are operated by independent retailers. With plans for further expansion, Morrisons stated that it is constantly reviewing its franchise model to ensure it remains the “first choice for its convenience partners”.
From this month, all independent retail partners will have the opportunity to earn up to a 6% volume rebate, compared to the previous cap of 1.5%. Morrisons also reaffirmed its commitment to ensure that the wholesale prices offered to franchise retailers will always be lower than the retail prices in its company-owned Daily stores. And the company noted its franchise partners also benefit from access to the Morrisons own brand offer, including its The Best range.
In recent months, the company has been investing in its logistics network and its Swan Valley site has seen the creation of a new dedicated ambient distribution centre, which is said to have “materially enhanced Morrisons ability to service its franchise customers”.
Meanwhile, Morrisons franchised retailers will this summer become the first in the independent convenience sector to have access to a supermarket loyalty scheme with the phased rollout of its More Card. This will give shoppers access to the group’s More Card Prices in their local convenience store, while also being able to earn loyalty points on their purchases.
In recent months, Morrisons has strengthened its senior leadership in the wholesale unit. This includes the appointment of Michael Kosciukiewicz in the newly created role of Supply Chain & Logistics Director for Convenience and Wholesale, and Victoria Lockie as the new Head of Wholesale – Strategic Projects and Acquisitions.
“We have made significant strides in recent months to strengthen our Morrisons Daily proposition and set ourselves up for future growth,” said Paul Dobson, Morrisons’ Director for Wholesale Convenience.
“Our new and existing franchise partners are pivotal to our overall success, and the team and I have been out and about listening to feedback from them and their customers, seeing first-hand what is working well and what we need to improve on. We’re excited to implement these enhanced terms for our independent retail partners and confident they will help us meet our ambitious growth plans for our Morrisons Daily estate.”
NAM Implications:
- The terms package seems a no-brainer for franchisees.
- Whilst with more loyalty to gain via the More Card…
- …the will to grow is certainly there.
- And eventually, some of these initiatives will kick in….
- …and will make an impact on Morrisons’ market share.
- Suppliers had best be around when it happens…
