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: iXtenso tests: REWE Pick&Go
13.03.2024   #app #customer experience

iXtenso tests: REWE Pick&Go

New test store in Düsseldorf - is the concept convincing?

REWE has launched its Pick&Go concept (on a trial basis) in Düsseldorf. We tested the store!

Thumbnail-Photo: EuroCIS Germany next stop for ITL’s cash handling and age verification...
13.02.2024   #Tech in Retail #artificial intelligence

EuroCIS Germany next stop for ITL’s cash handling and age verification solutions

Innovative Technology Ltd (ITL) will be joining retail suppliers and industry professionals at ‘EuroShop 2024 – the leading trade fair for retail technology’ which takes place in Düsseldorf, Germany from ...

Thumbnail-Photo: Hanshow’s ESL Solutions Push Precision and Performance at the National...
04.04.2024   #retail #customer experience

Hanshow’s ESL Solutions Push Precision and Performance at the National Hardware Show

NHS is the premier event where home centers, independent retailers, online retailers, wholesalers, distributors ...

Thumbnail-Photo: SES-imagotag becomes VusionGroup
29.01.2024   #software applications #artificial intelligence

SES-imagotag becomes VusionGroup

A new identity highlighting the broader portfolio of innovative solutions
developed by the Group to solve the major challenges of physical commerce

SES-imagotag (Euronext: SESL, FR0010282822), the global leader in digital solutions for physical commerce, today announced that it has changed its name to VusionGroup. This new name embodies the various product lines and solutions that have enhanced ...

Thumbnail-Photo: Smart working in retail: are headsets the solution?...
27.03.2024   #brick and mortar retail #video surveillance

Smart working in retail: are headsets the solution?

Internal communication technology and its potential

Retailers are often faced with the dilemma of combining customer service with operational efficiency. In this intersection ...

Thumbnail-Photo: Payment as a success factor: more than just paying...
15.01.2024   #Tech in Retail #payment systems

Payment as a success factor: more than just paying

Flashback to 1994: databases and ERP systems, first commercial websites, mobile phones with colour displays, CD-ROMs, Java as a programming language ...

Thumbnail-Photo: Record numbers for ITL at EuroCIS retail show in Düsseldorf...
07.03.2024   #self-checkout systems #POS software

Record numbers for ITL at EuroCIS retail show in Düsseldorf

Innovative Technology (ITL) reported a successful EuroCIS in Düsseldorf last week, where the organisers announced record visitor numbers. EuroCIS provides an exclusive hotspot for Retail Technology in Europe, ...

Thumbnail-Photo: Ask the Bot: generative AI in retail
02.01.2024   #Tech in Retail #food retail

Ask the Bot: generative AI in retail

Revolution in retail: the era of generative AI and AI bots

They are able to analyse data, write product descriptions, answer shoppers’ questions or write codes...

Thumbnail-Photo: Wayfair Announces Decorify App for Apple Vision Pro...
15.02.2024   #Tech in Retail #virtual reality

Wayfair Announces Decorify App for Apple Vision Pro

Wayfair's virtual room styler and 3D imaging tools enable Apple Vision Pro users to reimagine their living spaces and experience the future of shopping in their home

With the Wayfair Decorify app on Apple Vision Pro, users have a variety of options to see their spaces redesigned. They can upload a photo of their space ...

Thumbnail-Photo: Intertraffic Amsterdam exhibits ITL innovations ideal for the transport...
02.04.2024   #artificial intelligence #cash handling systems

Intertraffic Amsterdam exhibits ITL innovations ideal for the transport sector

Innovative Technology Ltd (ITL) are set to demo their cash handling and AI powered biometric products to the parking ...

Supplier

Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
VusionGroup SA
VusionGroup SA
55 place Nelson Mandela
90000 Nanterre