Blog: Morrisons 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
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.
US fans of British chocolate imports have taken to social media to vent their frustration after Hershey earlier this week reached a settlement with an importer to stop distributing British-made candy ...
Ads are commonly a bone of contention in this industry, with food manufacturers regularly coming under fire for what they believe is creative use of media. ...
Singapore-based agribusiness giant Wilmar International is to publish more information on how it sources its palm oil, a move welcomed by environmentalists....
- Why Post is increasing its exposure to cereal
- Lacklustre sales see Hershey turn to snacking
- Comment: Tread carefully over payment terms
- Premier Foods CEO expects UK supermarket rebound
- Briefing: The risks and rewards of e-tail in China
- Hershey to acquire meat jerky firm Krave
- Up & Go breakfast drinks set for UK launch
- Hershey linked to takeover of jerky maker Krave
- Crisp maker Sibell acquires Spain's Celigueta
- Campbell aligns structure with growth objectives
- 10 Key Trends in Food, Health and Nutrition 2015
- Unilever - Strategy and SWOT Report
- The Sugar Backlash and its Effects on Global Consumer Markets
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report