With continuous concerted pressure being applied by the likes of Tesco, Asda and Sainsbury’s, Morrisons has given its clearest sign yet that it will challenge them on the convenience store front, by acquiring a large number of Costcutter stores.
With rising petrol prices and an ongoing economic crisis to contend with, more and more consumers have been looking to do their shopping locally rather than driving further afield to larger supermarkets in a ploy to save money. Morrisons has lagged behind its competitors in providing a smaller store option up until this point, however.
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M Local was launched last year in an initial attempt to bridge the gap, and the company is looking to expand this operation over the coming years. However the acquisition of Costcutter stores, which are based around the UK and the Republic of Ireland, signifies a strengthening in the business’s stance.
It had already been rumoured that Morrisons has been overseeing operations at Costcutter for the last few months, but the company has refused to dignify those musings with a response.
It has been made clear though, that the UK’s fourth largest supermarket is now in talks with Bibby Line Group over investing in some of the organisation’s owned Costcutter branches.
Having been formed in 1986, Costcutter currently boasts 1,700 stores across its reach, employing over 600 people, and it should provide the likes of Morrisons with great potential for expansion into a necessary domain.