Morrisons has launched a £2,000 switching incentive to lure corner shop franchisees away from rival convenience store brands, including Tesco Express, Sainsbury's Local, and Asda Express, as part of a strategic push to climb Britain's supermarket league table. The Bradford-born supermarket chain, currently the fifth-largest in the UK by revenue, aims to attract more customers through rapid expansion of its Morrisons Daily brand.
Details of the Switching Incentive
The new scheme offers £2,000 to franchisees who switch their allegiances from other supermarket convenience store brands to Morrisons Daily, according to the Scottish Grocer. Additionally, Morrisons has doubled the 'refer a friend' prize pot for existing franchisees who convince others to move over to the brand. The company also launched a 'Hot Weather Club' for store operators, providing essential water and ice products to registered stores when local temperatures hit 23°C or above.
Morrisons Daily Expansion Strategy
Morrisons has over 1,600 convenience stores under its Morrisons Daily brand, which launched in 2015. The first location opened in Crewe, Cheshire, and the brand has since expanded significantly. A major boost came in 2022 when Morrisons purchased the McColls newsagents business from administration, converting its shops into Morrisons Daily outlets. Approximately 600 stores—nearly 40% of all Morrisons Daily locations—are run by franchisees, and the company hopes to increase this number.
Franchise Conference Announcement
The incentive was announced at Morrisons' recent national franchise conference. Paul Dobson, wholesale director at Morrisons, said: “Our franchise partners are the engine for the future growth for Morrisons Daily and this conference was a fantastic opportunity to celebrate our shared successes. We are entirely committed to supporting their businesses by reducing operational costs and making the very best of Morrisons – from our skilled teams to innovations like our Hot Weather Club – fully available to them.”
Impact on the UK Supermarket Landscape
Franchising is a common method for major brands to quickly expand their operations, with large companies signing deals with smaller traders to open shops using their branding and products. Morrisons, in business since 1899, is now targeting rapid growth to challenge the dominance of Tesco, the UK's largest supermarket chain, as well as Asda and Sainsbury's. The £2,000 switching incentive is a key part of this strategy to attract more franchisees and increase market share.
