Supermarket Expands with Asset Management Firm and Store Transformation

  • Morrisons agrees £220m warehouse deal with Intermediate Capital Group
  • Seven distribution warehouses on sale for up to 25 years
  • Acquired McColl’s stores to be converted into Morrisons Daily format
  • Plans to cut prices on selected products using cash from conversion

Morrisons has agreed to a £220 million sale and leaseback deal with asset management firm, Intermediate Capital Group, which includes contracts for seven of its distribution warehouses for up to 25 years. The supermarket, after acquiring McColl’s for £189m in May, is considering the conversion of almost 1,000 McColl’s stores into its own convenience store format, Morrisons Daily. David Potts, chief executive of Morrisons, expressed confidence that the transformation will make McColl’s a growing and thriving business serving local communities across the UK.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Morrisons’ sale and leaseback deal with Intermediate Capital Group, the acquisition of McColl’s, and the potential conversion of McColl’s stores into Morrisons Daily format. The only missing detail is the specific number of stores that will be converted, but overall, it presents objective information without any bias or misleading statements.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ sale and leaseback deal with Intermediate Capital Group and its plans to convert McColl’s stores into Morrisons Daily format. It also includes a quote from David Potts, the CEO of Morrisons. However, it lacks in-depth analysis or exploration of long-term trends or consequences of these decisions.
Financial Relevance: Yes
Financial Markets Impacted: Morrisons and Intermediate Capital Group
Financial Rating Justification: The article discusses a £220m sale and leaseback deal between Morrisons and Intermediate Capital Group, which impacts the financial situation of both companies. Additionally, it mentions Morrisons’ acquisition of McColl’s and potential conversion of stores, affecting their operations and financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk