Morrisons boosts rebates for Daily franchisees to accelerate convenience network growth
Morrisons raises rebate caps from 1.5% to up to 6% for Morrisons Daily franchisees, alongside competitive pricing reviews and extending the More loyalty scheme to franchised stores, as part of its strategy to expand and strengthen its UK convenience store network.
Morrisons is stepping up its support for independent retailers through a significant enhancement of its commercial proposition for Morrisons Daily franchisees, aimed at expanding its convenience store network across the UK. The supermarket group will offer franchise partners the chance to earn higher rebate rates, increasing the cap from 1.5% to as much as 6%. This sharp rise reflects Morrisons' commitment to providing more attractive financial incentives that align with its growth ambitions in the convenience sector.
The move comes as part of a broader strategy to bolster the convenience arm, which currently encompasses over 1,600 Morrisons Daily stores throughout the UK and the Channel Islands. Franchise partners benefit not only from access to Morrisons’ Own Brand product ranges but also from industry-leading store design support, competitive promotions, and volume-based rebates. These collective advantages are designed to help independent retailers thrive in a competitive market crowded by other established convenience brands and supermarket chains.
Morrisons’ enhanced proposition also complements ongoing initiatives to strengthen franchisees’ competitiveness. For instance, a recent pricing review conducted across nearly 2,000 products—benchmarked against Tesco Express, Sainsbury’s Local, and Co-op stores—aims to ensure Morrisons Daily stores offer value and competitive pricing. This pricing adjustment, coupled with improved margin pledges, is intended to offset pressures from declining categories and reinforce the franchise model as a viable and profitable option for independent retailers.
Additionally, Morrisons is extending its More loyalty scheme to franchised stores this year, allowing customers at these outlets to benefit from exclusive prices, points rewards, and promotions tied to the More card. This integration of loyalty initiatives across franchises further supports footfall and customer retention, key drivers of sustained franchise success.
These developments highlight Morrisons’ strategic intent to not only grow its convenience presence but also to nurture a closer, mutually beneficial partnership with its franchisees. By improving rebate ceilings, ensuring fair margins, supporting competitive pricing, and enhancing customer loyalty offerings, Morrisons aims to solidify its position as a leading convenience franchise operator in the UK market.