Morrison makes a convenient deal

It looks like the food retailer Morrison is finally doing something in the areas that it lags behind FTESE100 rivals Tesco and Sainsbury. Morrison is a long way behind the competition when it comes to convenience stores and buying on the web. In response it is to buy a number of Blockbuster video stores and turn them into Morrison convenience stores.

Convenient deal

The 49 stores being purchased for an undisclosed payment are of strategic value to Morrisons which has lagged other supermarkets in creating a convenience-store format, as well as a home delivery service.

It also wants to increase its presence in the lucrative South East of England.

Nationally, Morrisons has about 11% market share among supermarkets, but in the South it is just 6%.

The firm has previously declared its intention to open 70 convenience stores by the end of this year, primarily in the Greater London area.

To this end, it has already bought up seven stores from the failed camera retailer Jessops, and announced the rebranding of the 12 "M Local" stores that it already owns.

http://www.bbc.co.uk/news/business-21490465

Can't see any reason why the city shouldn't like this move as it shows the company is finally doing something to address its weaknesses against the competition. Now they need to sort out their lack of web presence, although hopes that some have that they might buy FTSE250 web retailer Ocado is probably wide of the mark. Ocado's market cap valuation looks a bit too hot at its current price to interest any bid or takeover.