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.
Growing demand for organic foods in the US is propelling sales in the sector. Organic products are moving from their niche to gain mainstream traction. Penetration is high - more than 80% of families ...
The health story of 2014 has been the debate over the impact sugar has on obesity. The issue hit the headlines in January and has stayed there, with only yesterday a study published in the UK calling ...
With demand for gluten-free on the rise, retailers in a number of countries have been building ranges of products to capitalise on a significant growth spot in challenging trading conditions. In the U...
France's fifth- and sixth-largest retailers, Auchan and Système U, are to team up on buying - with the companies to work together when dealing with international brands....
- M&A Watch: Why Danone/Lifeway deal could be next
- Focus: The impact of Heinz's stevia ketchup
- Focus: Gen Mills turns to M&A to bolster US ops
- Shopper trends: Some confidence but promos popular
- Viewpoint: US health food in play - at a price
- Burton's "eyeing" United Biscuits merger
- Premier Foods revamp creates three divisions
- General Mills Q1 profits tumble
- Unilever to boost presence in Nigeria
- WhiteWave to buy dairy-free firm So Delicious