The 6 priorities Morrisons has as its seeks to transform its fortunes
MORRISONS has unveiled its six strategic priorities which it believes can contribute to transforming the fortunes of the supermarket group.
It expects the focus on these simple ideas will “provide the business with many opportunities”, improve “all elements” of the shopping experience as well as reshape its cost base.
The retailer warned that “it will take time, and some components are still being developed or carefully reviewed by the new leadership team” but it believes the strategy will be the right one “for all industry trading conditions.”
1. To be more competitive
“Morrisons is a value-for-money brand and must always be competitive. We invested over £300m into the proposition last year and will invest more this year, with a further £181m already invested in the first half.
“We are working towards a simple, great value-for-money Morrisons price list that is right for our customers.
“Being competitive is not just about price. We need to set out an offer that has real resonance with customers and organise the business to deliver this consistently.”
2. To serve customers better
“Morrisons has a reputation for good customer service…we are doing more to enhance that reputation.
“During the first half, we recruited 5,000 new in-store colleagues and re-scheduled the mix of hours to serve customers better at the busiest times of the week.
“Customers are beginning to notice and our customer satisfaction scores have improved.”
3. Find local solutions
“We will tailor each store’s offer to local tastes and demographics. A core offer will apply for each store, with managers given autonomy to flex outside the core to best suit local customers. The organisation will be largely central, but the execution local.”
4. Develop popular and useful services
“We already have some very strong service areas – for example dry cleaning, where we are the second biggest in the UK, petrol stations, pharmacies, and popular cafés.
“Plans are at an early stage, but we see several opportunities to provide third-party in-store or on-site services that will drive footfall to our stores. These will not require us to commit significant capital, but will generate income and enhance returns.”
5. To simplify and speed up the organisation
“Morrisons is at its best when it keeps things simple. We are delayering the business and building a culture based on speed and teamwork, so we can become more agile and responsive.
6. To make core supermarkets strong again
“We aim to deliver our strengths in every store. We have nearly completed a programme to get all of the estate to a consistent standard, Back-to-Best, both inside and out. This will be done by the end of October.
“We will accelerate the refit programme. We have over 200 stores that have not been brightened-up for over five years. Our new Fresh Look refit programme will upgrade the estate by the end of 2018/19.
“All these improvements will be achieved within our existing capital expenditure expectations.”
