John Ibbotson / 4th May 2017
Morrisons is wowing us once again with its results as Dave Potts’ plans for an retaliation on the discount retailer insurgency is proving profitable!
“A year ago such a stunning turnaround seemed improbable at best, a fantasy at worst.
“As the smallest of the Big Four, and with a low price model that put it perilously close to the discounters’ territory, Morrisons had everything to lose from the Aldi and Lidl insurgency.
“But Dave Potts’ dogged, back-to-basics approach has transformed Morrisons’ fortunes – with the 3.4% like-for-like sales easily making it the fastest growing of the Big Four.
“The introduction of the ‘Best’ premium own brand range and more healthy options has pulled in more affluent shoppers and the focus on good value, fresh food has successfully driven a wedge between Morrisons and the discounters.
“With no M&A distractions to worry about, the Morrisons has made huge progress in restoring customer trust and clawing back ground from the discounters in its northern heartland.
“There is still a long way to go though. Morrisons lacks the scale and deep pockets of the resurgent Tesco and its market share slipped slightly in the first quarter of the year.
“Its turnaround is the project of attrition rather than alchemy but is no less impressive for that.”