Morrisons Intensifies C-Store Growth

The U.K.'s fourth largest supermarket chain is boosting its c-store expansion plans, an effort to regain market share from its rivals.

February 19, 2013

LONDON - Morrisons, Britain??s fourth-largest supermarket chain, is expected to announce next month that it will double its number of convenience store openings this year, from 50 to around 100, The Telegraph reports.

Among its supermarket rivals, Morrisons has been slow to enter the convenience store channel and has so far launched only 12 smaller format outlets. It had been planning to open 50 additional stores this year, an effort to compete with rivals Tesco and J Sainsbury, but its recent deal to purchase 49 former Blockbuster shops has enhanced its target.

Analysts said Morrisons?? limited presence in the c-store channel contributed to its poor Christmas performance. During the six weeks ending December 30, 2012, the company was the worst performer of the major supermarket groups, with like-for-like sales down 2.5%.

Gordon Mowat, managing director of Morrisons?? convenience business, said its purchase of the Blockbuster stores would provide the company with a "kick start in securing a solid foothold in this key sector."

"The convenience market is growing as more people shop locally and we want to be in a position to take advantage of this," he said.

Morrisons is also tweaking its convenience store brand, changing its current outlets from "M local" to "Morrisons M local."

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