The new convenience store group My Local, which acquired Morrisons c-stores yesterday, has revealed a £1bn supply deal with Nisa.
Morrisons yesterday offloaded its 140-strong convenience store chain to a team led by retail veteran Mike Greene and backed by Greybull Capital, which are set to relaunch the stores under the banner My Local.
My Local has today revealed that symbol group Nisa will supply it over the next five years, in what the retailer said was one of the largest deals in the convenience sector. It makes My Local one of Nisa’s most significant wholesale customers.
Greene, My Local chief executive, said Nisa will enable it to deliver “the fast, fresh service that our customers expect and we see great opportunities to drive benefit together”.
The agreement will see deliveries into My Local stores six days a week which will consist of 45% fresh produce.
Individual stores will be able to order produce based on the local area and customer demand. Greene told Retail Week that he wants 5% of My Local stores to offer produce specific to the shop’s local area.
The retailer said it will have access to regional suppliers that can deliver goods from within 15 miles of any store. The remainder of the produce will be supplied through Nisa’s central distribution system.
“We share a community focus with My Local which will underpin our future business relationship,” said Nisa’s chief executive Nick Read.
Greene has maintained that My Local’s superior logistics, layout and truly ‘local’ proposition will ensure it succeeds where Morrisons failed.
Morrisons was late to the party when it launched into the convenience market, lagging behind both Tesco and Sainsbury’s. Critics of its M Local business said the stores were in poor locations and badly designed.
Morrisons received £25m for the 140 stores but will incur a loss on the disposal of around £30m. It will also remain guarantor on the leases.
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Morrisons' c-stores new owner My Local unveils £1bn Nisa supply deal