The grocery market was hit by another industry-changing development this morning, when Morrisons and McColl’s revealed that the supermarket would supply the convenience retailer.

After its decision last year to begin to supplying Amazon and revive its Safeway brand, this cements Morrisons’ move into the convenience sector.

And the deal doesn’t just affect the parties involved.

In a sector which has changed at a rate of knots since Sainsbury’s purchase of Argos, the tie-up may have repercussions for both the Tesco-Booker merger and Sainsbury’s acquisition target Nisa. It may also make McColl’s itself a more attractive prospect for takeovers.

In another year’s time, the grocery convenience landscape could well be transformed once again.

Elsewhere today, Australian retailer House is coming to the UK and Next’s marketing director has departed after three decades.

Quote of the day

“This may not be the last headline we see about McColl’s in the next few months. The store portfolio still makes it a very attractive asset and a full bid from another food retailer is not ruled out by today’s agreement.”

– Peel Hunt’s Jonathan Pritchard on the Morrisons-McColl’s tie-up

Today in numbers


The number of gold medals picked up by Waitrose at the International Cheese Awards


The number of UK stores that Australian homewares retailer House hopes to have by 2020

Tomorrow’s agenda

Tomorrow brings Wickes and Tool Station owner Travis Perkins’ interim results.

Becky Waller-Davies, reporter