Blog: Hannah AbdullaMorrisons reacts to discounter pressure with own-label unit

Hannah Abdulla | 7 April 2014

Morrisons has created its own label unit to compete with discount retailers

Morrisons has created its own label unit to compete with discount retailers

The rise of the discounters is weighing heavy on Morrisons' mind as the supermarket responds by creating its own-label unit.

Led by trading director Andy Atkinson, reporting into group trading director Casper Meijer, the new unit will bring together own-brand sourcing, packaging design and product development.

News of the introduction was timed with the departure news of corporate brand and marketing director Belinda Youngs. Youngs will stay until later this year to oversee the marketing of Morrisons' value positioning an loyalty proposition.

Supermarkets are coming under increasing pressure to offer more value as discount retailers such as Aldi and Lidl and value variety retailers such as Poundland and B&M Bargains continue to grab market share.

Speaking to just-food at the end of last week, Shore Capital analyst Clive Black said: "Such stores are gaining popularity because they tend to offer straightforward and generally convenient value, compared to many incumbent and traditional retailers."

Earlier in the year, after Aldi reported a 31% increase in its Christmas sales, Black said the supermarket would face increasing pressure from the Big 4 during 2014.

"We will see the big four fight back - it has to happen."

Meijer said Morrisons introduction of its own label unit would enable it to offer its customers the best value for money.

 

Sectors: Retail

Companies: Meijer, Poundland, Lidl, Aldi, Morrisons

BLOG

Amazon causing more waves in FMCG - without an announcement

The online retail behemoth is again causing chatter throughout the sector, this time amid speculation it is set to launch more private-label products. ...

BLOG

China's new e-commerce laws - confusion reigns

Talking with our readers, a common problem among them is their battle to keep tabs on the changes to regulations in China. And the recent moves Beijing has made to revamp its rules around e-commerce h...

BLOG

Is Chinese meat company WH Group eyeing US M&A?

Rumours Chinese pork giant WH Group is eyeing acquisitions, particularly in the US, have surfaced....

just-food homepage



Forgot your password?