McColl’s drops Nisa to take up supply deal with Morrisons

McColl’s Retail Group has signed a new supply deal with Morrisons, ending its £2bn contract with Nisa.

From January, Morrisons will begin to supply both branded and Safeway own brand fresh food and grocery products to McColl’s estate of 1,300 convenience stores, and 350 newsagents.

The partnership will give McColl’s exclusive access to the Safeway brand for 12 months, which will provide its stores with an enhanced and better quality fresh range.

“As a large, leading multiple grocery retailer with its own outstanding food manufacturing capability Morrisons stands apart from the competition,” said Jonathan Miller, McColl’s chief executive. “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.”

McColl’s said the agreement will also allow it to improve its commercial terms and simplify its operations as it migrates to a single wholesale partner for the entire estate. 

The company, which has had links with Nisa since 2013 and last year signed a deal for Nisa to supply its 298 stores acquired from the Co-op, put its supply contract out to retender earlier this year.

Last week, McColl’s announced that it had increased the number of convenience stores in its estate by 80% in the past three years.