Morrisons has unveiled plans for a £450 million makeover, in a bid to reinvent the UK’s fourth-largest grocery chain as a fresh food specialist.
With increasing consumer emphasis on healthier eating and food quality, chief executive Mark Bolland stated that Morrisons is viewed as “downmarket” and “a low price operator”. The supermarket’s black and yellow logo is to be changed, and its ‘More reasons to shop at Morrisons’ strapline dropped next month, with a new campaign swiftly on its heels.
Chief executive Mark Bolland explained the results of a six-month strategy review, in which he said he wanted to make the chain more upmarket, by “decluttering” stores.
Bolland admitted that Morrisons has been left behind in the environmentally friendly retail stakes, setting out a range of targets to achieve by 2010, including cutting water use by 15 per cent and stamping out 36 per cent of its carbon footprint. The chain is also due to introduce ranges of home and leisure goods.
The strategy review included a £90m investment in distribution, a £110m spend on IT updates and a further £180m on in-store changes. The chain has reported it intends to find £50m of in-store savings, which will incorporate staff cuts.
The revamp plans were revealed in the wake of yesterday’s financial results release, in which Morrisons generated a £331m full-year profit, compared to last year’s £54m. However, almost all the growth has been attributed to acquired Safeway stores, as opposed to core Morrisons branches.
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