Morrisons inks £220m sale of warehouses as it aims to become ‘more popular’
Morrisons has inked a £220m sale and leaseback transaction of seven logistics properties, as it aims to become “more popular and more accessible.”
The supermarket – which is owned by New-York private equity titan Clayton Dubilier & Rice – announced the completion of the deal with asset manager ICG on Friday.
Morrisons has undertaken to lease the properties for up to 25 years from completion.
It comes as the grocer has lost out its slice of the market as discount giants Aldi and Lidl pick up new shoppers amid a cost of living crunch.
The Bradford-based retailer is investing in a strategy to become “a broader, stronger, more popular and more accessible business,” with the latest deal set to finance additional investment, Jo Goff, Morrisons chief financial officer, said.
Goff pointed to the takeover of the beleaguered convenience store brand McColl’s earlier this year.
Morrisons also said next year it plans to open a further five supermarkets across the UK, as well as pumping more cash into its manufacturing operations.
Morrisons’ sales in the 12 weeks to the end of November reached £2.8bn, yet this was down 4.7 per cent on the same period last year, data from insights firm Kantar revealed this week.
Before the £7bn takeover by CD&R, the supermarket held 10 per cent of the market, but has recently slipped out of the Big Four grocers, after Aldi surpassed Morrisons.