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Morrisons agrees Channel Islands wholesale deal with Sandpiper

By Oliver Haill

Date: Tuesday 13 Feb 2018

LONDON (ShareCast) - (ShareCast News) - Morrisons has struck a long-term commercial agreement with the leading operator of retail outlets in the Channel Islands.
Morrisons and Sandpiper have agreed to rebrand most of the islanders' 43 small 'food hall' supermarkets and convenience stores as Morrison Daily outlets, supplying fresh foods, Morrisons own-brand and branded goods.

Some non-Morrison Daily outlets will feature the re-born Safeway brand, where Safeway and branded products will be supplied, with all stores converting to selling Morrisons-supplied products over the next year.

Sandpiper also operates a number of in-house outlets in the Channel Islands plus franchise agreements with Burger King, Costa and Marks & Spencer.

Morrisons already supplies wholesale goods to Amazon, McColl's convenience shops and petrol station forecourt convenience store operator Rontec.

James Badger, Morrisons wholesale director, said: "We are pleased to be announcing a partnership with a strong franchise partner in Sandpiper and the opportunity to bring Morrisons quality and value to customers in the Channel Islands. As Morrisons becomes broader and stronger, our brand is becoming more accessible to more customers."

Morrisons house broker Shore Capital said it was not adjusting its 2019 forecasts following the deal but saw it as "positive reinforcement of the statement strategy as it further broadens the reach of the Morrison brand".

Analysts also said the deal helps to underpin the company's guidance of 700m annualised wholesale revenues by the end of the 2018 financial year and "builds the credibility in the market of its wholesale proposition, in our view".