CEO Rami Baitiéh marks one year at Morrisons with significant shifts.
- Debt reduction efforts increase financial health and investment capability.
- Customer insight initiatives aim to enhance service and satisfaction.
- Expansion of More Card loyalty programme drives competitive member pricing.
- Strategic moves in technology and leadership refresh the supermarket’s operations.
Rami Baitiéh has completed his first year leading Morrisons, implementing substantial changes across the company. With a background of two decades at Carrefour, Baitiéh has focused on revitalising Morrisons with a commitment to cultural, organisational, and digital innovation. The CEO acknowledges the dedication of employees and the trust of customers as crucial elements in achieving a healthier balance sheet. The latest figures indicate a 2.4% sales rise in the 12 weeks to November 3, surpassing the market’s average growth for the first time since mid-2021.
Following a substantial debt from its £10 billion acquisition by CD&R in 2021, Morrisons tackled this financial challenge by selling ground leases on 76 supermarkets, raising £331 million. Coupled with the sale of its forecourt business for £2.5 billion, these actions are set to reduce the debt to £3.6 billion, a 41% decrease. This strategy enhances Morrisons’ ability to invest competitively in a market where inflation pressures on prices prevail.
Baitiéh introduced several initiatives prioritising customer feedback as a cornerstone for growth. Inviting customers to management meetings and establishing regular roundtables reflect a strategy to directly incorporate consumer input into decision-making. These forums address key issues like pricing and service quality, aiming to align business operations closely with shopper expectations and preferences.
Enhancements to the More Card scheme, although initiated before Baitiéh’s tenure, have gained momentum under his leadership with significant investments. Over 2,000 More Card prices have been rolled out, while more benefits have been introduced for Amazon and convenience store purchases. The grocer aims to increase transactions involving the loyalty scheme from 50% to 70%, focusing on personalisation to boost customer engagement.
Morrisons’ strategic collaboration with the AI company Focal Systems represents a notable technological advancement. Nearly 2,000 stores have been equipped with AI-powered cameras to improve stock availability and streamline staff efficiency. This move not only enhances product availability but also frees up workers to focus on customer service, reinforcing the retailer’s competitive edge in a technology-driven market.
Efforts to remain competitive in pricing include the Aldi and Lidl Price Match initiative. Matching over 200 products from rival discounters, this programme spans a wide range of goods, including groceries and household essentials. The initiative demonstrates Morrisons’ commitment to maintaining value for customers while supporting British farming through products like local beef and milk.
Baitiéh has also focused on leadership development, establishing The Sir Ken Morrison Leadership School to nurture talent within the company. This programme, featuring mentorship from notable figures like Sir Terry Leahy, aims to foster the next generation of leaders, cementing the company’s commitment to sustained internal growth and development.
Further expansion into the convenience store sector, including acquiring additional stores in the Channel Islands and converting previous acquisitions to the Morrisons Daily brand, underscores growth in this area. Extending partnerships with Deliveroo and Just Eat illustrates an effort to strengthen the online and convenience market presence.
The senior leadership team has undergone significant changes with a third of executives moving on. This transition allowed Baitiéh to introduce a new leadership suite aligned with strategic goals, including prominent hires such as Andrew Staniland and Joseph Sutton. This refreshed leadership team signifies a strategic shift to invigorate Morrisons for future growth.
Operational efficiency has been a target, with restructuring logistics operations leading to the reduction of up to 300 jobs and the reorganisation of warehousing staff schedules. The transition from night to twilight shifts is designed to enhance productivity and reduce errors, supporting the company’s overall efficiency drive without compromising job satisfaction.
Morrisons, under Rami Baitiéh’s guidance, has set a path of transformation focused on reducing debt, enhancing customer interaction, technological integration, and leadership renewal, marking a dynamic year of progress.
