The food and grocery research company IGD has said it believes UK retailer Morrison’s strong results and strategic review signal a new phase in the company’s development.
IGD predicts fresh and premium sales will play a key role in the retailer’s business growth.
“These results signal that Morrisons has successfully integrated the Safeway business it bought three years ago,” says IGD senior business analyst Gavin Rothwell. “The review reveals Morrisons’ desire to further broaden its appeal by doubling the number of premium, organic and Eat Smart healthy products on the back of strong growth this year.”
In its UK Grocery Retailing report, IGD points out that UK shoppers spend some GBP13bn (US$26bn) a year on premium food and grocery products, and forecasts that this will rise to GBP19.2bn by 2011.
“Premium was once the focus of retailers such as Marks & Spencer and Waitrose but those retailers not involved in the premium market are now the exception, rather than the rule and it is a significant growth opportunity,” Rothwell says. “All the indicators suggest that consumer demand for premium and healthy foods will continue to grow and that is why Morrisons is trying to grow its Eat Smart, The Best and Organics ranges.”
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