Morrisons has introduced a £2,000 incentive to attract franchisees from rival convenience store brands, including Tesco Express, Sainsbury's Local, and Asda Express, to switch to its Morrisons Daily banner. The move is part of the supermarket's strategy to expand its presence and challenge larger competitors.
Details of the Incentive Scheme
The Bradford-based grocer, currently the fifth-largest supermarket in the UK by revenue, aims to climb the rankings. As part of the initiative, Morrisons is offering £2,000 to corner shop franchisees who switch allegiances. Additionally, the company has doubled the 'refer a friend' reward for existing franchisees who convince others to join Morrisons Daily, and launched a 'Hot Weather Club' that provides free water and ice to stores when local temperatures exceed 23°C.
Announced at Morrisons' national franchise conference, the scheme targets rapid expansion of its convenience store network. Morrisons Daily, launched in 2015, now operates over 1,600 stores, with around 600 (nearly 40%) run by franchisees.
Growth Strategy and Background
Paul Dobson, wholesale director at Morrisons, stated: “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.”
Morrisons, founded in 1899, significantly boosted its convenience store footprint by acquiring the McColls newsagents chain from administration in 2022. The takeover allowed Morrisons to rebrand those shops under the Morrisons Daily name, solidifying its control over the supply chain.
Impact on the Market
The incentive is designed to lure franchisees away from competitors, potentially reshaping the convenience store landscape. With over 1,600 Morrisons Daily locations, the company is leveraging franchising to expand quickly without the capital expenditure of company-owned stores. The new measures aim to increase franchisee numbers in the coming years, intensifying competition with Tesco, Sainsbury's, and Asda.
