In the past year, Morrisons has undergone significant changes under the leadership of CEO Rami Baitiéh.
- The retailer has worked to reduce its debt through strategic sales and acquisitions.
- Customer engagement has been enhanced through new initiatives aimed at listening to their needs.
- Morrisons has expanded its loyalty programme and introduced competitive pricing strategies.
- A focus on technology and efficiency has been implemented to improve store operations.
Rami Baitiéh, CEO of Morrisons, marked his first year with several strategic transformations aimed at reviving the supermarket’s performance. Having previously served at Carrefour, Baitiéh brought extensive experience and a clear vision. His leadership has already had a tangible impact on the retailer’s financial health, with a reported 2.4% sales growth in the last quarter, exceeding market averages for the first time since 2021.
Faced with substantial debt following a £10bn acquisition, Morrisons has taken decisive steps to alleviate this burden. By selling ground leases on 76 supermarket sites for £331m and its forecourt business for £2.5bn, the company has effectively cut its debt by 41%, reducing it to £3.6bn.
Central to Baitiéh’s strategy is customer feedback. He has emphasised the importance of listening to consumers and staff, instituting monthly customer roundtables to gather insights into pricing and service. This initiative empowers shoppers to actively participate in shaping their shopping experience while aligning with managerial priorities.
Under Baitiéh’s direction, Morrisons has revitalised its loyalty programme. Despite the groundwork being laid before his time, he has significantly invested in enhancing member benefits. The introduction of over 2,000 ‘More Card’ prices represents the largest investment in customer loyalty and pricing strategies in recent years. Additionally, the programme now extends to Amazon and convenience store purchases, further incentivising loyalty through hyper-personalised offers.
Recognising the importance of stock availability, Morrisons has embraced technological advancements. Thousands of AI-driven cameras have been installed to monitor shelf levels, directing staff efficiently to restock items. This move, which positions Morrisons as a pioneer in UK retail technology, aims to enhance customer service and optimise operational efficiency.
The competitive pricing strategy has also evolved with the introduction of price matching for ‘More Card’ members, aligning Morrisons’ costs with those of budget competitors like Aldi and Lidl. A commitment to sourcing 100% British products remains a foundation of this approach, reinforcing consumer trust in product quality.
Baitiéh has also prioritised leadership development through The Sir Ken Morrison Leadership School. This initiative seeks to foster career growth and skill acquisition among staff, with mentoring from notable figures such as Sir Terry Leahy. The school underscores a commitment to nurturing internal talent and corporate culture.
Moreover, the grocer is expanding its footprint in the convenience sector, with plans to grow to 2,000 stores by 2025. Recent acquisitions in the Channel Islands and collaborations with delivery platforms like Deliveroo and Just Eat signify a robust strategy to tap into this burgeoning market.
Significant organisational restructuring has also been evident. Baitiéh has overseen a comprehensive overhaul of senior management, replacing nearly a third of top executives to realign the company’s strategic focus.
Operational changes in logistics and warehousing have been enacted to improve efficiency. The shift towards early and twilight shifts aims to bolster productivity while addressing logistical challenges, despite job reductions resulting from these changes.
Morrisons, under Baitiéh’s leadership, has executed substantial and strategic changes aimed at strengthening its market position and operational efficiency.
