• Morrisons to give convenience another go with Safeway brand

        • Morrisons’ announcement on its plans to supply McColl’s convenience stores and newsagents signals a firm commitment to move back into the convenience market, according to Molly Johnson-Jones, Senior Analyst at GlobalData.

          MLocal stores were sold in 2015, after a failed effort to participate in the growing convenience market, but this clearly has not put it off. The convenience market is the fastest growing segment of the UK food retail market, and given the lack of growth opportunities elsewhere, GlobalData see the convenience market as an essential segment to be competitive in.

          Sainsbury’s recent growth has been largely down to its convenience stores and Tesco is making the move with Booker, further showing that the independent convenience sector is desirable. With Tesco and Sainsbury’s experiencing the benefits of being convenience players it makes sense for Morrisons to be reviving the Safeway brand with a view to supply independents.

          After a successful trial with EuroGarages was revealed in the company’s preliminary results in May, Morrisons’ potential to create a side brand with Safeway could provide further growth in a highly competitive, and cost pressured, sector. If the collaboration goes ahead, and the Safeway brand grows in scale, it would be a huge positive for Morrisons after having lost 1.2 percentage points from its UK food & grocery market share over the last five years.

          It would make the most of operational leverage within the supply chain, given that its vertically integrated supply chain is not operating at full capacity and producing more products would only incur small fixed cost increases. The venture would also give Morrisons access to the high-growth food on the go (FOTG) market, which it currently does not have the geographical scope to take advantage of. In addition, it is a high return, low investment opportunity which would improve brand visibility and allow further geographical reach without the cost of running stores. All in all, we see it as a positive move if it goes ahead. The Safeway brand revival with one of the largest convenience players offers a low risk, potentially high reward opportunity.

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • Totality Services marks World Password Day with top tips

          Totality Services marks World Password Day with top tips

          Thursday 6th May 2021 by clareb
          Since 2013, the first Thursday of May each year marks World Password Day, promoting better password habits to stay safe online. With so many people working at home due to the ongoing pandemic, often without the IT support and protection provided...Read More...
          How remote working has changed issues faced by women in the workplace

          How remote working has changed issues faced by women in the workplace

          Wednesday 28th Apr 2021 by clareb
          Research from Yoppie has found that while remote working has improved pressures around appearance and PMS for women within the workplace, issues of fair representation and equal pay remain prevalent.  When surveyed by Yoppie...Read More...
          Half of office workers not confident about returning without vaccinations

          Half of office workers not confident about returning without vaccinations

          Tuesday 27th Apr 2021 by clareb
          Research from Ezra, a provider of digital coaching, has revealed that just half of UK office workers feel confident about returning to work without a full vaccinated workplace.  Ezra’s research found that 80 per cent of UK office wor...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue