Wm Morrison Supermarkets (LON:MRW) is going to the Channel Islands, having inked a wholesale deal with a local retailer.
Morrisons’ share price has been steady in London in today’s session, having added 0.18 percent to 218.90p as of 14:26 GMT. The stock is outperforming the broader market, with the benchmark FTSE 100 index currently standing at 7,176.93 points, flat in percentage terms. The group’s shares have lost more than 11 percent of their value over the past year, as compared with about a 1.2-percent dip in the Footsie.
Grocer going to Channel Islands
Morrisons announced in a statement today that it had inked a long-term franchise and wholesale supply agreement with SandpiperCI, an operator of 43 mini supermarkets and convenience stores in the Channel Islands. The deal will see most sites convert into Morrisons Daily stores, and be supplied with both the retailer’s own brand and branded products. In addition, the FTSE 100 supermarket will supply Safeway and branded products to the remaining Sandpiper stores. All stores will convert to selling Morrisons-supplied products over the next year.
“We are pleased to be announcing a partnership with a strong franchise partner in Sandpiper and the opportunity to bring Morrisons quality and value to customers in the Channel Islands,” James Badger, Morrisons Wholesale Director, commented in the statement.
The deal underscores the UK’s Big Four supermarkets’ push into the wholesale market. Last year, Morrisons inked a wholesale supply agreement with McColl’s, while rival Tesco (LON:TSCO) is currently in the process of acquiring Booker Group (LON:BOK).
Analysts on Morrisons
The 15 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 230.00p on the shares, with a high estimate of 275.00p and a low estimate of 170.00p. As of February 10, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group advises investors to hold their position in the company