The Co-op Group has lost out to grocery rival Morrisons in the bid to supply products to convenience chain McColl’s.
In May, the Group started a three-month trial supplying wine, fresh and ambient groceries to 25 McColl’s stores. It hoped a more permanent arrangement would help it extend the reach of Co-op-branded products without opening more stores.
But the plan has been trumped by another bid from Morrisons which will now take on the long-term supply of McColl’s 1,300 convenience stores and 350 newsagents.
The decision follows a “competitive process” to secure business with McColl’s, which before the trial with the Group was supplied with wine, fresh food and grocery was supplied by Palmer & Harvey and retailer’s co-op network Nisa.
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A spokesperson for the Co-op Group said: “Our partnership was just one of a number of innovative partnerships we are exploring.
“While it’s disappointing not to have won their business permanently we have learned a lot and gained valuable experience which sets us up well for the future.
“We are continuing to develop a number of opportunities to get our award-winning Co-op Food in front of more customers.”
