Thousands of jobs saved as Morrisons buys convenience store giant McColl’s

Image credits: PA Media

McColl’s Retail Group, one of Britain’s biggest convenience store chains, has been saved from administration by Morrisons, after a battle with EG Group during the weekend.

The jobs of 16,000 people have also been protected.

Kevin Mountford, savings expert and co-founder of Raisin UK, shared his thoughts on the deal: “It makes total sense for Morrisons to fight to save McColls. McColl’s also trades under the name Morrisons Daily, which is Morrisons answer to Tesco Express, which has helped Tesco see huge profits.

“Morrisons isn’t new to the convenience store business, with Morrisons earlier operating M Local stores, but their stores collapsed in 2015 and were rebranded as My Local stores.

“With McColls facing administration, Morrisons was once again at risk of losing their convenience store formats, which was going to be a huge concern for Morrisons’ new owners as Morrisons Daily was performing well compared to McColl’s original brand.

“With the EG Group wanting to buy McColls, Morrisons Daily would have been at risk as the EG Group owns the supermarket Asda, direct competitors. This will have no doubt spurred Morrisons on to protect the Morrisons Daily business.

“We should also expect to see McColl’s further progress with their rebranding of stores to Morrisons Daily, and this could hugely work in Morrisons’ favour as their convenience store numbers grow to compete against Tesco.

“It’s also brilliant news for communities, with jobs protected and local convenience stores open, and McColls avoiding over 16,000 people being made redundant!”