Industry Growth of Morrisons
Wm Morrison Supermarket plc operates a chain of supermarkets. Morrison has outlets in the United Kingdom ranked the fourth largest in the region. The headquarters of Morrison is based in Bradford, West Yorkshire in the United Kingdom.
Wm Morrison Supermarket Plc operates under the brand name of Morrisons (Institute of Grocery Distribution, 1993 p. 77). Estimates indicate that Morrisons demands more than eleven percent of the market share in the United Kingdom, following behind Tesco with thirty percent market share, Sainsbury’s with sixteen percent market share and Asda with sixteen percent market share. Co-operative Group demands a four percent of the market share in the United Kingdom (Clarke & Stanley, 2005 p. 99).
William Morrison is the founder of Morrisons in 1899. The supermarket started with supplying butter and eggs to the target customers in Rawson Market. Most of the store locations for Morrisons target Northern England (Morrisons.com., 2014). The company has outlets all over United Kingdom after part of the shares were takeover from Safeway. It is estimated that Morrisons has more than five hundred outlets in the United Kingdom alone. Morrison family own ten percent of the supermarket. Morrisons is part of the London Stock Exchange, and it is active in the FTSE 100 index list of companies (Icon Group Ltd., 2000 p. 11).
Morrisons is a public company specializing in the retailing industry. The current president is known as Sir Ken Morrison. Chairman is known as Sir Ian Gibson. Chief Executive Officer is known as Dalton Phillips. Revenue as at 2013 was estimated to be more than eighteen billion pounds. Operating income was estimated to stand at nine hundred and forty nine million pounds according to the 2013 estimates. Net income as at 2013 stood at more than six hundred and forty seven million pounds. Morrisons supports more than 132,000 employees distributed across United Kingdom (Morrisons.com., 2014).
Subsidiaries of Morrisons are Safeway Stores Limited, Wm Morrison Supermarket Stores Limited, Wm Morrison Convenience Stores Limited, Wm Morrison Online Limited, Kiddicare.com Limited and Fresh Direct, LLC. Store conversions involving Safeways and Morrisons was one of the biggest acquisition in the United Kingdom at that time reflecting on the retail industry (Robinson & Kirk, 2007 p. 54). The acquisition threatened Morrison’s profit margins. Most the challenges at the time of the acquisition were connected to the change in the accounting systems. Safeways operated in South of England and Scotland (Great Britain: Competition Commission, 2003 p. 335). Dalton Phillips has been prominent in the introduction of convenience stores, online shopping and updating the old theme to contemporary theme.
In 2012, Morrisons experienced a fall in profits by 2.5%. Top management teams at Morrisons labelled some of the outlets as disappointing at the end 2012 financial performance. The organization despite poor sales indicated that it was on the right track in attaining the desired objectives (Carollo, 2012 p. 12). Surveys conducted in end 2013 indicated a decline in sales by 5.6%. Morrisons argued that the poor sales were contributed by the organization’s failure to offer online shopping. Morrisons has responded to the poor sales by initiating online shopping in 2014 January (Morrisons.com., 2014).
The blame on online shopping was inadequate; there are some companies with no online shopping platforms, and they performed well. Such outlets are Lidl and Aldi supermarkets. The operations of Morrisons in the United Kingdom recently have experienced mixed success. The organization must re-strategize on the best ways of regaining the glory that is fading away with time.
There has been possible private equity takeover bid by the Morrisons family. In February 2014, sources indicated that the members of the Morrisons had approached a number of private equity firms with the intention of privatizing the company. Morrison’s family owns ten percent of the company shares (iCD Research, 2004 p. 53). The family members of the Morrisons are said to be unhappy with the financial position of the organization, and that it has been disastrous over the years. The corporate strategy developed by Dalton Phillips is said to be inappropriate and wrongly timed.
The product range offered by Morrisons is marketed under the brand name of Morrisons. Common products in the target market identify with M savers, M kitchen, M, M nume, M Signature, Morrisons free from, Morrisons just for kids (JFK), Morrisons wholefoods and NUTMEG among others (Morrisons.com., 2014). Morrisons has received a number of awards over the years of operations. In 2011, Morrisons received the silver award for Cream Dessert Product and New Ice Cream; this is well known as Morrisons 9 Ice Cream Chocolate Temptations. Silver Award for Best Meat based products commonly known for Stuffing Lattice Rolls and Morrisons Mini Sausage. Morrisons also won the best foodservice outlet particularly in serving chips and fish. Morrisons has also received other awards in consecutive years.
Morrisons has been influential in the retail business in the United Kingdom. Morrisons has grown with years having started as a family businesses. In the recent years, the performance of Morrisons has not been satisfactory, with the organization reporting declining sales over the years. Top management teams of Morrisons must come up with a workable solution. This is to make sure that Morrisons can sustain itself in the ever competitive retail market.
List of References
Carollo, B (2012). Audit Report for Wm Morrison Supermarkets PLC. München: GRIN Verlag GmbH. 3-16.
Clarke, C. & Stanley, M (2005). Somerfield Plc and Wm Morrison Supermarkets Plc. a Report on the Acquisition by Somerfield Plc of 115 Stores from Wm Morrison Supermarkets Plc: Competition Commission Report. London: Stationery Office. 12-124.
Great Britain: Competition Commission (2003). Safeway Plc and Asda Group Limited (owned by Wal-Mart Stores Inc); Wm Morrison Supermarkets PLC; J Sainsbury Plc; and Tesco Plc: A Report on the Merger’s in Contemplation. London: Stationery Office Books. 123-459.
iCD Research (2004). Wm Morrison Supermarkets PLC: Company Profile and SWOT Analysis. Seattle, Washington: Amazon.com, Inc. 34-103.
Icon Group Ltd. (2000). WM. MORRISON SUPERMARKETS PLC: Labour Productivity Benchmarks and International Gap Analysis. London: Icon Group International, Inc. 4-16.
Institute of Grocery Distribution (1993). Wm Morrison Supermarkets plc. London: Institute of Grocery Distribution. 12-197.
Morrisons.com. (2014). Morrisons: More of what matters. Available: http://www.morrisons.com/. Last accessed 04th March 2014.
Robinson, T. & Kirk, K (2007). William Morrison Supermarkets plc Acquisition Manual. Seattle, Washington: Amazon.com, Inc. 23-99.
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