Member Article

Morrisons looks on the bright side despite losses

Bradford-based Morrisons has tentatively announced ‘good progress’ on their three year plan despite reporting lower pretax profits of £239 million from £344 million in the previous period last year.

The firm has reportedly opened 4 new supermarkets and 17 convenience stores and is expecting up to 70 new branches to be built in 2014-15.

Morrisons earlier reported that they were investing just under £20 million in their chill chain, through improved refrigeration in manufacturing sites, depots and stores and dealing direct with more suppliers.

Online they have progressed their retail offering beyond initial regions of Warwickshire and Yorkshire, and are now operating in Birmingham, Manchester, North London, Sheffield and, since the end of the period, in Lincolnshire.

Sir Ian Gibson, non-executive Chairman, said: “Conditions are tough, and the industry is going through unprecedented change.

“The Board is confident of the new strategy and Morrisons financial position remains strong.”

Chief executive Dalton Philips said: “We are six months into the three-year plan that we set out in March and, although it is early days, I am encouraged by the progress we have made.

“There is an enormous amount of change and modernisation flowing through our core business, much of it enabled by new systems.

“Price investment, in-store improvements, and better products were all key components of the work undertaken in the first half, and the Morrisons card launches soon.

“Our new growth channels - online and convenience - are progressing well, and our cost-savings and cash flow plans are both on track to achieve our ambitious three-year targets.

“Although it is too early to see the benefits of the three-year plan in the sales line, Morrisons is getting back on the front foot, and implementing change and innovation at real pace throughout the business.

“We are meeting the challenges of structural change with decisive action and are on track to become a more distinctive value retailer for the next generation of grocery retail.”

This was posted in Bdaily's Members' News section by Clare Burnett .