Morrisons could bid for Garden Centre Group

Bradford-based Morrisons, the UK’s fourth-biggest supermarket chain, is one of a number of potential suitors to have received sale documents about the group, which was previously called Wyevale.

Offers for the Garden Centre Group, which operates 131 garden centres and employs 4,500 people, are expected to come in somewhere below £300m.

Last month, Tesco was tipped as a potential bidder for the garden centre company. Tesco bought garden centre group Dobbies three years ago.

Morrisons declined to comment yesterday.

It is understood that documents have been sent out to interested parties, but it is very early days in the bidding process.

Morrisons is one of several interested companies.

Other potential bidders include private equity firms Bridgepoint and Duke Street Capital. Bridgepoint owns Pret A Manger and Fat Face.

Earlier this year Morrisons started to trial garden centre products in 30 stores.

The trial is one of a number of new ideas being tested by Morrisons’ chief executive Dalton Philips.

He has also launched a convenience store trial, with the first M local shop opening in Ilkley. Mr Philips described early results as positive.

M Local charges the same price for fresh food as larger Morrisons stores, but the average basket size is 3.5 per cent more expensive than bigger stores owing to a mark-up on non-food and packaged goods.

Other initiatives include a £3bn investment in an online shopping operation, which has been kick-started with the acquisition of online retailer Kiddicare for £70m.

Morrisons has also hired former Apple executive Simon Thompson to head up the group’s online grocery business.

Last week Morrisons announced plans to ditch its upmarket “The Best” range in favour of a number of new brands that focus on convenience, responsible buying and fresh food.

New products will appear in store this week featuring new brand “M Kitchen”, a convenience range that will include bistro dishes such as King Prawn Pad Thai, Battered Calamari and Steak and Stilton Roast Potato Topped Pie.