Morrisons’ policy of no delivery charges is attracting independent retailers to its Morrisons Daily fascia, it has said.
It comes during a time where rival wholesalers have been ramping up delivery fees in a bid to counteract rising fuel prices.
Senior wholesale manager Nick Russell told The Grocer it had recently signed up several retailers to the brand and is in “active discussions with lots more”.
The supermarket giant said the fact it wasn’t charging for delivery was making Morrisons Daily an increasingly popular proposition for independents, alongside its other “retailer-focused benefits” such as access to Morrisons’ own-label range.
“It is an important growth area for Morrisons and we expect to convert further partners in the future,” said Russell. “We have a sales team looking at opportunities but we’re also keen to hear from any independent retailers who would like to become a Morrisons franchisee.”
High-profile retailers Harj Dhasee and Steve Bassett have been the first two independents to convert to the brand. Dhasee opened his larger 1,600 sq ft store in the Cotswolds in February, while Bassett launched his Bitterne Park store in Southampton under the fascia last week.
The boost in interest for the Morrisons Daily fascia comes after Nisa announced to retail partners it would be doubling its fuel levy from £4.88 to £9.77 as of this week.
In a letter to retailers, Nisa COO John McNeill said: ”Since early February, deliveries have been subject to a fuel levy of £4.88 per delivery. However, as has been well documented in the national media, fuel prices have continued to rise at a record level and even with the recent reduction in fuel duty in the Spring Budget still sit considerably higher than at the start of the year.
“Although the cost of fuel is now so much higher, we have been absorbing the incremental costs in what was left of the last quarter as we agreed to only review the levy on a quarterly basis.
“However, following the quarterly review of the fuel levy we can now confirm that we will raise the fuel levy amount to £9.77 per delivery to cover the increased incremental cost of fuel we’re experiencing, effective from week commencing 11 April.”
One Nisa retailer said the move would cost his business £50 a week. “It’s not good,” he said. “It’s DHL that runs Nisa, not the Co-op.”
He explained he had heard “lots of retailers” were watching the Morrisons Daily model with interest. “Morrisons is the one to watch,” he said. “The market is in need of a symbol group that listens, not dictates. Personally, I believe they will smash it.”
Wholesaler Booker also has a £29.95 delivery charge in place for its Premier and Family Shopper retailers, while non-symbol operators are being charged £34.95 per delivery. The move was slammed by retailers, forcing some to cut staff and opening hours, as well as look at reducing promotions and price-marked packs in a bid to mitigate the fee.
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