Morrisons has announced a change in leadership, naming Rami Baitiéh as its new Chief Executive of Morrisons. Baitiéh, the former CEO of Carrefour France, will take over from David Potts, who has led the supermarket chain for the past nine years.
The move comes two years after Morrisons was acquired by private equity giant CD&R in a deal worth £7bn, which has left it with debts of over £5bn. Potts led the revival of Morrisons and expanded its operations, notably with the acquisition of the McColl’s convenience chain, although recent results have lagged those of its rivals.
Baitiéh served with Carrefour for more than 25 years before announcing his departure in August this year. Rising up through the ranks, he has also served as CEO of Carrefour’s Taiwan, Argentina, and Spain units. Morrisons said he has a record of improving competitiveness, expanding market share, and accelerating growth.
Baitiéh said: “Morrisons holds a special place for shoppers across the UK, and I am honoured to be joining the business to help build on the strong links the company has with its loyal customers and the communities where it operates. As a manufacturer, wholesaler and seller of food, Morrisons is uniquely positioned to grow in the coming years while remaining deeply focused on customer satisfaction.”
Potts, who will work with Baitiéh during the transition, added: “Serving as Morrisons Chief Executive for the last nine years has been the privilege of my working life. There have been so many highlights, but the way all our colleagues rose to the immense challenge of the Covid pandemic, fed the nation and made sure no-one was left behind will stay with me forever.”
Meanwhile, Morrisons also posted a trading update for its fiscal third quarter, with total sales (ex. fuel) up 3.1% to £3.8bn and LFL sales increasing 2.9%.
The chain noted that the results were helped by a continued focus on improving its competitiveness, including further investment in its ‘Prices Locked Low’ commitment.
During the quarter, Morrisons introduced 227 new own-label, 26 ‘The Best’, and 19 Savers products. It also added 122 Morrisons Daily convenience stores.
Potts noted: “Our sharper prices and new loyalty scheme are resonating strongly with customers, and I’m pleased to be reporting our fifth consecutive quarter of like-for-like sales improvement. We are shaping a broader and stronger Morrisons. Alongside the growth in our supermarkets, we have made further progress across the business with our wholesale, convenience and food manufacturing operations also showing consistent growth.”
NAM Implications:
- ‘Morrisons said he has a record of improving competitiveness, expanding market share, and accelerating growth’.
- A challenge for any incoming CEO.
- The new CEO will obviously take a little time to adjust to the UK grocery market, first-hand.
