Blog:
Morrisons to face questions over ambition
Dean Best | 7 September 2011
This week, Morrisons chief executive Dalton Philips will be in the spotlight when he announces the retailer's half-year results. The UK's fourth-largest grocer has been growing sales ahead of the market, although, like its rivals, its growth is lagging the inflation seen in the sector.
However, Philips will face questions about his plans to move the business further into convenience and online. A year ago, Philips said Morrisons would look to open convenience stores on a trial basis and would consider developing an online service. Since then, Morrisons has opened its first M-local store (and plans to open two more) and acquired a 10% stake in US online retailer FreshDirect, a move to help it set up its first online service, to be launched in London.
Oriel Securities analyst Jonathan Pritchard says the retailer had "exceeded" his expectations on like-for-like sales. However, he is less complimentary about Morrisons' diversification. "Customers want more than plain vanilla superstore food retailing these days - non-food, convenience, internet etc and, whilst the self-help open to the company is worthwhile and deliverable, we fear that the LFL form will wane eventually."
Philips is a man unwilling to be rushed into hasty expansion; last March, when Morrisons announced the FreshDirect deal, he was asked about the retailer's online ambitions. The decision to launch a service in London pushed back Morrisons' plans to enter the online space but Philips was quick to point to his rivals' records online. However, some industry watchers still want him to go further - and faster.
BLOG
UK regulator shines light on Amazon's Deliveroo investment
Amazon's move to invest in UK food-delivery business Deliveroo caught the eye when it was announced in May – but it’s also attracted the attention of the country’s competition regulator....
BLOG
Amazon tries again in UK food delivery
Perhaps today's most eye-catching corporate food story here in the UK is Amazon's decision to invest in food-delivery business Deliveroo....
Most Popular
Insights
- Will Danone 2021 predictions placate critics?
- The UK snack-bar market during Covid-19
- Can plant-based cheese come of age?
- China becomes Nestle's problem child
- Big Food's VC-style funds: the investments so far
News
- Danone makes change at top amid investor pressure
- Beyond Meat hails fast-food deals but shares fall
- US investment firm Artisan renews Danone attack
- Ex-Unilever CEO Polman to join veggie firm's board
- Maple Leaf takes action on plant-based brands
Market research
- Meal Kits (Prepared Meals) Market in the United Kingdom - Outlook to 2023: Market Size, Growth and Forecast Analytics
- Bangladesh In-depth PEST Insights
- Condiment Sauces (Seasonings, Dressings & Sauces) Market in Germany - Outlook to 2023: Market Size, Growth and Forecast Analytics
- RCL Foods Ltd (RCL) - Financial and Strategic SWOT Analysis Review
- Soups in the United States