McColl’s has announced its plans to open 294 new Morrisons Daily stores by November 2022.
The convenience store group has raised £35 million from investors for the development.
It will use the round of capital raising to increase its number of Morrisons Daily locations by 56 to 350 and expand refrigeration capacity for chilled products at its existing locations.
The investment will see the franchise add 50 additional stores to its initial aim of 300 locations, a year earlier than its original deadline.
The news comes after disappointing financial results from the retailer which included a year-on-year loss of 530 per cent with an after-tax loss of £6.3 million over the 26 weeks to May 30.
“Today’s capital raising represents a transformational opportunity to accelerate our strategy and capitalise on the growth opportunity available to us in food-led convenience”, McColl’s chief executive Jonathan Miller said.
“We are delighted with the progress we have made so far with the roll-out of Morrisons Daily conversions within our store estate.
“The proceeds of capital raising will enable us to build on this foundation by accelerating the pace of the roll-out of our Morrisons Daily conversions to deliver 50 additional conversions on top of the original 300 planned, and to complete the roll-out a year earlier than current plans.”
“Morrisons’ core grocery proposition, with its brand, quality and product range, is perfectly complemented by McColl’s neighbourhood store locations, strengths in core impulse sales categories, and expertise in running services such as Post Offices.
“We have a clear plan for growth and the capital raising will enable us to drive long-term sustainable growth to drive shareholder returns.”