Morrisons used its latest business update to hone in on two key priorities for the business for the next 12 months.
The event, at Harrogate Convention Centre, hosted by IGD earlier this month, saw around 1,000 representatives from brands and suppliers hear Morrisons senior leadership team set out the retailer’s priorities for the next 12 months.
Improving shopper satisfaction and delivering volume growth
Morrisons CEO, Rami Baitiéh, spotlighted two key areas the retailer will focus on for the next 12 months.
The first is improving the perception of the Morrisons brand, measured through shoppers’ Net Promoter Score (NPS). Its aim is to make Morrisons a place shoppers choose to shop rather than a place shoppers use to shop.
The second, having maintained sales growth since Baitiéh took over the reins in November 2023, is to grow market share. It will look to achieve this by growing sales and volumes.
Morrisons will set about achieving these goals by implementing a new trading strategy.
Morrisons Magic
Morrisons used the event to unveil a new trading strategy, dubbed Morrisons Magic. The retailer said this will be a customer-led plan that delivers value to shoppers by providing more reasons to shop at the retailer.
The key aspects of Morrisons Magic will be: pricing, store merchandising, product quality, range and innovation, and the Market Street of tomorrow.
A new approach to ranging and merchandising in its supermarkets will kick-start the plan.
Warrington points the way
The retailer’s recently revamped Warrington store highlights the approach Morrisons will take to achieve many of its goals. The key elements seen in Warrington will be rolled out across its supermarket estate by October, with full deployment expected to be completed by February 2026.
This will see price communication become simpler and clearer, ensuring shoppers navigate stores knowing they haven’t missed a promotion, whilst also emphasising Morrisons value credentials.
Warrington also showcases how inspiration from the farm shops of today will influence the Market Street of tomorrow. This will see ranges reviewed to ensure contemporary tastes are catered for whilst using the strength of Market Street to better target the popular dine-in meal occasion.
Despite the recent news that counters in a limited number of stores will be closed, Morrisons used the event to reiterate Market Street’s importance as a key element of its DNA and a vehicle for delivering the increase in sales and volumes it is targeting.
Morrisons also aims to open 400 Morrisons Daily convenience stores by the end of 2026. It believes the stores will add sales equivalent to 15 supermarkets.
Improving quality and developing The Best
Suppliers can also expect a greater focus on improving product quality and development for Morrisons premium private label line, The Best.
On product quality, Morrisons is focusing on products currently receiving 1 or 2-star reviews and the steps that can be taken to resolve this. The retailer claimed that, in most instances, improving the consistency of product quality is enough to solve problems.
The quality of popular products will also be examined, with packaging design, clarity of preparation and cooking instructions, and ingredient lists reviewed to enhance quality perceptions.
Morrisons will expand the number of products included in The Best range to over 1,000, as it targets growth in premium private label, one of the market’s fastest-growing sectors.
Growing together through innovation
In a call to action from suppliers and brands, Morrisons wants to be the retailer where new products are launched and the home of true innovation, to be the home of products unavailable elsewhere.
Taking note of smaller businesses, Morrisons said the size of a business does not matter; innovation will always be welcome no matter where it comes from. Appealing to all businesses, Morrisons said it would prioritise new products, fast-tracking them into the market.
The year ahead, can Morrisons keep the magic alive?
‘Morrisons Magic’ provides a clear strategic focus for the next phase of the retailer’s recovery.
The refresh of its supermarkets to bring the best out of Market Street and appeal to contemporary meal occasion trends should resonate with shoppers. Once in store, clearer price messaging and improvements to product quality should further lift shopper perceptions.
However, this will take time to deliver the sales uplift Morrisons desires. In the next 12 months, the expansion of its convenience estate is likely to be the key factor in achieving sales growth.
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