Company News • 12.11.2015

Morrisons takes the tough decisions

David Gray is a Retail Analyst in grocery based in London....
David Gray is a Retail Analyst in grocery based in London.
Source: Planet Retail

Planet Retail sees the Q3 numbers from Morrisons as indicative of limited progress in terms of topline like-for-like performance.

However, we are encouraged by new management’s willingness to take the tough decisions exiting convenience in the quarter and ending the costly Match & More loyalty programme.

On Morrisons’ Q3 results, David Gray, Retail Analyst at Planet Retail, commented:

“As expected, the numbers this morning indicate limited progress with like-for-like declines coming in on a par with the previous quarter – although against tougher comps. The result also puts Morrisons behind key competitors – Sainsbury’s holding its own, Tesco making progress at home.

Even so, credit must be given to Morrisons new management under David Potts for taking some tough but necessary decisions to protect the long-term profitability of the business – exiting convenience and the price comparison loyalty scheme, Match & More. Both initiatives were a major cost and their removal will allow the chain to invest in the core proposition, hypermarkets & superstores. This after all is where Morrisons makes the vast majority of its sales and profits.

Even though convenience remains the UK’s second fastest growing bricks & mortar channel it is by no means a golden ticket to success, and new managements recognition of this can only be seen as a blessing. Challenges around site selection, ranging, pricing, and logistics all make convenience a tough nut to crack. Morrisons also faced players with over a decades experience in the channel, no walk in the park by any means.

The rationale behind price matching a limited range discounter through Match & More also has to be questioned. Their (discounters) sleek operating model, limited range, plethora of shelf ready packaging and lower staff numbers per store make it uneconomic for a full-range supermarket to price match a discounter. Morrisons may be moving in the right direction under new management though this has yet to show in the numbers.”

Source: Planet Retail

related articles:

popular articles:

Thumbnail-Photo: Retail Asia Conference & Expo (RACE)
07.10.2019   #online trading #retail

Retail Asia Conference & Expo (RACE)

As the leading retail exhibition in Asia, RACE is taken place from 6 – 8 May 2020.

As the leading retail exhibition in Asia, RACE is recognised as the must-join event among the industry’s most influential retailers and customers. RACE features three focus areas: Retail technology, retail design & in-store marketing ...

Thumbnail-Photo: Making Deeper Connections at ISE 2020
21.11.2019   #digital signage #video

Making Deeper Connections at ISE 2020

Visitor registration opens; exciting new features; most conferences ever; opening address confirmed

Visitor registration opens today for ISE 2020, which is set to be the most compelling Integrated Systems Europe show ever. Taking place at the RAI Amsterdam on 11-14 February 2020, ISE is the world’s leading event for the professional systems ...

Thumbnail-Photo: Enhanced, interactive, virtual – It’s all about the experience!...
21.11.2019   #online trading #customer satisfaction

Enhanced, interactive, virtual – It’s all about the experience!

AR and VR can boost online and offline retail

New technologies permeate all aspects of the retail business, whether it’s self-checkouts, AI or robotics. Virtual and Augmented Reality (VR and AR) are yet other components in this setting. In this interview with iXtenso, Kelly Goetsch, ...

Thumbnail-Photo: Mobile payments at the supermarket checkout
05.08.2019   #mobile payment #smartphone

Mobile payments at the supermarket checkout

An early adopter’s experience of mobile payments

Or: "What’s that you’re doing with your watch?“I still remember the first time I used mobile payment technology and paid for items with my smartphone at a supermarket checkout: It was October 17, 2018, exactly seven days after ...

Thumbnail-Photo: Retail analytics: Breaking down data silos and improving operational...
29.07.2019   #data management #data analysis

Retail analytics: Breaking down data silos and improving operational efficiency

How comprehensive data usage led to higher revenue at Heine

“As a business with heritage in mail order, we used to have access to detailed reports about product performance in our catalogues. Once our digital presence grew, we had very limited information available that combined the KPIs for both our ...

Thumbnail-Photo: drs//POS – The POS system for many check-out situations...
13.09.2019   #pos systems #cashpoints

drs//POS – The POS system for many check-out situations

With the POS system developed by Superdata you are put in the picture

The POS acts as an ear in the store. It affects how timely, and with what information, decision makers at the head office are in a position to assess developments in the store and are able to respond appropriately to the situation.With our POS ...

Thumbnail-Photo: New year brings new regulations
13.09.2019   #data management #receipt printer

New year brings new regulations

What are the big changes for German point of sales systems come 2020?

Big changes are coming to Germany’s point of sale systems starting January 1, 2020. Two terms that are tossed around in this connection are "Belegausgabepflicht" (Receipt Provision Ordinance) and ...

Thumbnail-Photo: Silver Surfers: Older adults ride the wave of mobile technology and shop...
01.08.2019   #online trading #e-commerce

Silver Surfers: Older adults ride the wave of mobile technology and shop online

The increasing importance of e-commerce for senior citizens

You are wrong if you think it’s mostly young people who spend time online. Older adults are also increasingly embracing online shopping with enthusiasm.In this interview, Spencer Hinzen, Director of Sales, Central Region, Ruckus Networks, ...

Thumbnail-Photo: The iXtenso editors tested self-scanning ......
30.09.2019   #mobile payment #self-checkout systems

The iXtenso editors tested self-scanning ...

... with an app of the Hobbymarkt Knauber in Bonn, Germany

Snabble has developed a payment app that allows customers to scan their purchases in retail stores and pay online. I wondered: How does it work?The app is in use in the Bonn DIY and hobby market Knauber, among other places. Let’s make a move ...

Thumbnail-Photo: POS machine market growth
27.08.2019   #epos systems #pos systems

POS machine market growth

Driver: Adoption of mobile devices for POS transaction

The number of POS machines has increased in the past four years following the introduction of chip-embedded payment cards & Personal Identification Number (PIN). Moreover, growth in the number of departmental and retail stores, which is fueling ...

Supplier

Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven