Tue, 19 Feb 2013 | DIVISION SALE
The supermarket chain WM Morrisons is set to buy business assets from the failed Blockbuster film rental chain with the intention of developing a new convenience store franchise.
A total of 49 of the stores were purchased and they are expected to be converted and running as Morrisons M local stores by late summer this year.
Blockbuster entered administration earlier this year, with approximately 164 stores set to close. The news that at least some of these shops can be saved through the Morrisons purchase will no doubt be welcomed by local communities.
Gordon Mowat, head of Morrisons Convenience, commented on the purchase: “We are rolling out the Morrisons M local estate at pace this year, and these acquisitions give us a kick-start in securing a solid foothold in this key sector.
“The convenience market is growing, as more people shop locally and we want to be in a position to take advantage of this.”
Administrators Deloitte stated that the deal with Morrisons is likely to be the first of several to go through as Blockbuster's assets are processed.
In addition to buying the Blockbuster stores, Morrisons has snapped up seven Jessops outlets, which it is also due to convert into its own-brand convenience stores. These will be added to the existing 12 M Local stores that it already owns that will be converted to Morrisons M shops in a rebrand.
The supermarket has seen its market share against other supermarkets fall to 11 per cent across the UK and just six per cent in the South. Its efforts to introduce a new convenience brand are designed to help tackle this and the majority of the smaller stores will be located in and around London where people are most likely to shop at local outlets.
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