Independent discount retailer TJ Morris plans to launch an own-label food range.

The Merseyside-based chain, which currently operates 138 stores across northern England and the Midlands under the Home Bargains fascia, is in the early stages of developing an ambient range.

Home Bargains-branded products will initially include everyday items such as tinned fruit and veg, fish and meat and will be sourced directly from TJ Morris' current suppliers on the Continent and in Asia.

The chain currently sells only branded food lines such as pasta, rice, sauces, soups, cereals, sweets and snacks, though it sells and has own-label household and kitchen items, picture frames and toys. It had dabbled with own-label food products in the past but this was the first time it had decided to launch a full range, said operations director Joe Morris.

"We want to get the range up and running as soon as possible and grow it quickly," he said. "The initial focus will be on food but we will also look at how we can expand into categories such as health and beauty."

Home Bargains is recruiting its first-ever dedicated own-label buyer to work on the project. Whoever got the job would have a "blank canvas", said Morris.

TJ Morris has also received planning permission to expand its Merseyside depot to a 10-storey distribution centre and retail training facility.

Work on the £30m project is expected to begin in June and will give the depot the capacity to serve an extra 350 stores. It will also create 700 jobs.

The company had considered opening a second depot in Ashby-de-la-Zouch, Leicestershire, but instead decided to stick to its Merseyside roots, said Morris.

TJ Morris is ranked third in The Grocer's Top 50 ranking of independent retailers with sales of £273m and a pre-tax profit of £20.3m. The 2008 Top 50 ranking will appear in our 23 February issue.

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