Morrisons already acts as a wholesale supplier to 1,200 McColl's shops under a deal dating back to 2017. The pair said on Monday that under an extended agreement, Morrisons will act as McColl's sole wholesale supplier until 2027.
Like all Britain's supermarket groups, Morrisons, which is no.4 behind Tesco, Sainsbury's and Asda has grown during the pandemic as consumers, unable to go to restaurants, have spent more on groceries.
Morrisons said in its statement the Morrisons Daily brand will be rolled out to 300 more McColl's shops over the next three years, after a successful trial in recent months. McColl's will continue to own and operate the shops.
It did not disclose any financial details.
"We are building a broader, stronger Morrisons forcustomers, and leveraging our existing assets to achieve capital light, profitable growth," Morrisons chief executive David Potts said.
(Reporting by Sarah Young; editing by Barbara Lewis)