Morrisons - comment
On the latest investor call, management mentioned that some smaller convenience stores were unprofitable. The smaller outlets were much more dependent on tobacco sales, which have collapsed and been replaced with illicit non-taxed tobacco. We expect these stores to be the bulk of the 100 (of 1,700) stores being shut. We have always been sceptical about the convenience store roll-out (across the industry), as we don’t see the pie getting bigger, but we do acknowledge convenience stores can offer a margin boost.