Is Morrison's going down the pan?

7 November 2013

Morrisons

They've spent a lot of money on using Take That's music and getting Alan Hansen in their adverts, but Morrison's are not doing very well at all. Could they end up in Deathwatch?

The company is still Britain's fourth most popular grocer, but sales have been falling steadily and they're worsening. So what seems to be the problem?

Well, Aldi and Lidl are currently stealing a march on absolutely everybody, but Morrison's is also hamstrung by a lack of online presence. They can't compete with price and they can't compete with convenience.

Tesco, Asda and Sainsbury's still lead the way in terms of revenue and everyone below Morrison's are hatching up great ways of creating loyal customers, be it through price or exclusivity. Morrison's as a brand is neither here nor there.

The forecast for the company isn't great, with analysts marking Morrison's down from last year. If they don't buck their ideas up, could we be looking at one of the biggest companies going to the wall? Or is this just a blip for a tired business?

[reuters]

TOPICS:   High Street News

18 comments

  • Michael S.
    Morrisons have signed a deal with Ocado to provide a delivery service over the next year, so so I wouldn't be too quick to write them off for lack of online presence.
  • j.
    No
  • klingelton
    yep, Morrisons and Ocado jump into bed together and frustrate Waitrose. Morrisions needs to invest in modernisation of its supermarkets in order to reduce waste and therefore maximise profits. This will make it easier to move into the digital age. That or go the way of Grandways, Kwiksave and other supermarkets. Still a much nicer shopping experience than Tesco's, ASDA or rubbing shoulders with the self important toffs in Sainsbury's.
  • Alexis
    My local Morrisons is like a scene out of the Walking Dead
  • cinderella
    Morrisons have always been an excellent northern supermarket. They are in a state of flux right now, but from little acorns............
  • More A.
    Morrisons has to be the worst shopping experience ever. Used to use it all the time due to partners staff discount, however as soon as she left we started shopping elsewhere. ASDA and Sainsbury's are much better, although I usually use ASDA due to price.
  • Tits M.
    I like our local Morrisons as its one of those 'stores of the future', otherwise I stick to Sainsburys. Made the mistake of going to Asda once, the people who shop there just stink of failure. They're about 5 years too late to the online game - even Iceland have one FFS. Weren't Amazon thinking of entering the groceries market (or was that in the US)? Might make a decent partnership.
  • first l.
    I find where the supermarket is located has a bigger impact on how 'good' the shopping experience is, rather than the company. The Morrisons next to where I work is in a fairly poor area and attracts lower income customers, and as a result it stinks to high-heaven, is packed with shuffling elderly people and always runs out of cakes. The Morrisons a little further out of town is, in contrast, quite nice. The same applies to the two local ASDA branches. Waitrose and M&S are probably the only exceptions, but you never see them in scummy areas.
  • B1zarroPrim3
    My local Morrisons is always full of old people, majority of whom park in the "parent and child" spaces because those spaces are nearer to the doors. The stores have the worst self-service systems and the checkouts are always manned by old people who take way too long to actually do anything. Seriously, I feel like I've aged 20 years by the time I'm done. Personally, I prefer Asda or Tesco.
  • Bill B.
    Bring back Safeway!
  • fox f.
    Safeway is still in Canada, go there
  • buffylass
    def go in trouble their problems was they done all their shops up and then put between 50p and a couple of £ on each item especially the cat food even whiskers they added £1.00, Catsan Cat litter went up by £1.50, Warburtons Bread is £1.49, Aldi is £1.00, Crisps are a ridiculous price, lurpack spreadable butter went up I was spending a fortune each week now I shop at Aldi, at least I come out with a few bags of stuff and can see were my money went , but morrisons is a joke now, They own Iceland now as well and theres a big difference in the prices in that store than Morrisons, they tried to make the customer pay for their renovations but it all back backfired on them they need to get their priorities right, we wont pay well over the odds when we can get it cheaper in Aldi and lidl
  • Her L.
    @buffylass What?
  • Mr C.
    Can please translate somebody buffylass please message. cannot i it understand! you thank!
  • Fucker
    Just read the last 9 words and it makes perfect sense, and you save time too.. 'we can get it cheaper in Aldi and lidl' She also claims Morrisons owns Iceland. Not sure if she means the store or the country, not that it matters - bollocks.
  • Chav E.
    @buffylass: Chav to English Translation: They are definitely getting into trouble. Their problems first started when they spent their money renovating their stores, they then procedeed to put between £0.50-£2.00 extra on each product, especially their cat food products (even Whiskers to which they increased the price by £1.00!). Catsan Cat litter went up by £1.50, Warburtons Bread is now £1.49 (Aldi's in comparison is only £1.00). Crisps are a ridiculous price and Lurpack spreadable butter also went up. I was spending a fortune each week I shopped there but now I shop at Aldi instead, at least now I come out with a few bags of stuff and can see were my money went, but Morrisons is a joke now. They own Iceland now as well and there is a big difference in their prices in comparison to Morrisons. Morrisons tried to make the customer pay for their renovations but it all but backfired on them and they need to get their priorities right! We won't pay well over the odds when we can get it cheaper in Aldi and Lidl! Disclaimer: Please ignore the ignorance of @buffylass Morrisons had, in the past with several other retailers, tried to acquire a stake, which could have iniated a takeover, within Iceland Foods Plc. however this never occured. In 2012 a 77% stake in Iceland Foods Plc. was purchased by a consortium including Malcolm Walker and Graham Kirkham for 2.3 billion pound sterling. Malcolm Walker originally founded Iceland in 2007 and is currently the CEO of the company. (The translation displayed may not represent the true feelings of the original comment authour, however every effort has been made to try and repricate this.)
  • Lavender H.
    @Chav to English: "...they then procedeed..." Is English not your first language?
  • Mrs C.
    Morrisons became too expensive, don't blame old or slow staff. One needs to be pretty rich to shop there! I used to spend £85 and end up with five bags of shopping. When I tried Aldi, I spent £48 and had five bags. Everything costs much more then it should, particularly chemicals, toiletries, etc. I only go to Morrisons for very few items I like or cannot buy at Aldi. Morrisons will loose customers to Aldi or Lidl if they do not stop being so greedy. Also, when I want to compare the prices, Morrisons hides theirs in secrecy...

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