Morrisons | Verdict Company Briefing
Morrisons is the UK’s fourth largest supermarket operator. Following the arrival of Dalton Phillips as the retailer's CEO in March 2010, Morrisons has outlined its intention to further develop its fresh food offer – with fresh format stores, launch a transactional website – building on the learnings from kiddicare, rollout its M Local convenience stores and expand its non-food offer online.
- Plan your expansion strategy by understanding how and where Morrisons has increased its store portfolio, and the impact this has had on densities
- Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Morrisons
- Compare your fresh food strategies with Morrisons new format stores
- Analyse the risk posed to competition by expansion of the M local convenience format
Morrisons' has faced a challenge in marrying its focus on quality & fresh with low price resonance in an austere climate. Morrisons is the only one of the Big Four to stay away from price comparison strategies. According to our How Britain Shops data for 2012 price as a driver of disloyalty has increased year-on-year by 5.3 percentage points.
Late to the online grocery market Morrisons has yet to launch a transactional site. When it does so it will find a tough audience awaits. Shopping behaviour has matured in the channel and expectations are growing. There is a lot of ground to be made up and Morrisons will face a much tougher challenge than any of its competitors have in the past.
Morrisons has lost three senior executives in 2012 with the departure of chief financial officer Richard Pennycook, commercial director Richard Hodgson and marketing director, Richard Lancaster. These high profile departures threaten to destabilise CEO Dalton Philip's drive towards revitalising the retailer.
- Will Morrisons food & grocery sales recover in 2013, and what impact will there be on market share?
- What are Morrisons plans for expansion over the coming years, and how will this contribute to sales growth?
- How has Morrisons fresh format rollout impacted its price perception?
Table of contentsOVERVIEW
Balances new quality image with traditional value;
Own brand relaunch will tempt new shoppers;
Demanding audience awaits online;
Time to speed up convenience rollout;
Non-food through clicks not bricks;
M Local and Kiddicare should strengthen health & beauty.
Balances new quality image with traditional value
A tough audience awaits online
Time to speed up convenience rollout
Non-food through clicks not bricks
Recent key events
Fresh format stores roll out
M Local unknown to most of market
Relaunches entry level own brand as M Savers …
… and replaces Best with M Signature
Launches winestore online
Nutmeg clothing range for kids
Vertical integration continues …
... but is it of benefit in current circumstances?
Proposition & customer profile
Attracts more shoppers with expansion and refurbishments
New segment of younger and more affluent shoppers tempted instore
Scales back further expansion
Food & grocery
Health & beauty
Verdict company briefing
Market size calculation
Sales density calculation
Ask the analyst
Table: Morrisons company information 2012
Table: Morrisons retail proposition 2012
Table: Morrisons key operating statistics 2008–13
Table: Morrisons trading record 2003–13e
Table: Morrisons UK store portfolio 2003–13
Table: Morrisons estimated sales mix 2012
Table: Morrisons food & grocery and non-food space allocation 2010 & 2012
Table: Morrisons food & grocery and non-food space allocation (cont'd) 2010 & 2012
Figure: Morrisons fascia 2012
Figure: Morrisons M Savers range 2012
Figure: Morrisonscellar.com October 2012
Figure: Morrisons visitor share 2008–12
Figure: Morrisons main user share by demographic group 2012
Figure: Morrisons UK sales and growth to January 2008–13
Figure: Morrisons UK operating profit and growth to January 2007–12
Figure: Morrisons food & grocery sales (inc VAT) in calendar years 2008 – 13e
Figure: Morrisons food & grocery sales per sq ft for calendar years ex VAT 2008e–13e
Figure: Morrisons share of total market held by food & grocery retailers 2008 to 2013e
Figure: Morrisons share of market in food & grocery products 2008–13e
Figure: Morrisons space allocation summary 2010 & 2012
Figure: Morrisons space allocation percentage point change 2012 on 2010
Figure: Morrisons visitor share for personal care 2008–12
Figure: Morrisons visitor share by demographic group 2012
Figure: Morrisons health & beauty sales (incl VAT) for calendar years 2008e–13e
Figure: Morrisons versus sector in health & beauty UK sales growth 2008–13e
Figure: Morrisons UK health & beauty sales per sq ft 2008–13e
Figure: Morrisons health & beauty market share 2008 – 13e
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Current time at just-drinks headquarters: 3:20pm (Wednesday, 19 June 2013)