Fun

Morrisons to shut stores as profits fall

MorrisonsOpenshaw
admin
Written by admin

MorrisonsOpenshawMorrisons have announced they are closing 11 stores as part of the plan to transform the companies financial situation. This could mean the potential loss of up to 900 jobs. This is on top of the news that

It is stated here that Morrisons have dropped to £126m half year pre tax profit which is a drop of 47%.

It also reported a 47% drop in half-year pre-tax profit to £126m.

CEO of Morrisons David Potts who has taken over from Dalton Phillips has said he regrets the proposed closure of the 11 stores.

“This is a difficult decision but one which we cannot see any way through to make those stores viable,” 

The majority of Morrisons store closures will be the smaller stores, and also their 140 “M Local” stores. Which for Tesco have been a roaring success. The M Local stores are being sold for an estimated £25m.

Ex Morrisons Openshaw Admin Manager has stated:

“This is the most insane decision from a company owner I have ever heard. Dalton Phillips had the the intelligence of a Duck. In fact we actually had a duck in our warehouse yard for a whole day once, and we nicknamed him Dalton. Tescos have lead the way with express stores, and Sainsburys are doing great with theirs, can we not get it right? With our rich history and the fact we were able to take over Safeway, this failure really shows we are losing our way and simply can’t keep up with the times.”

 

Another investor is keen to step in though and profit from the failure of Morrisons and rebrand the current “M Local” stores as “My Local”.

Morrisons have said they are going back to their roots, and focusing on their core supermarkets. This to us sounds sounds ridiculous. They have considerably failed with their “express” or “local format and they are essentially just retreating back to safe ground.

Morrisons Finances:

  • 47% drop in pre-tax profits
  • 11 stores to close
  • 900 jobs at risk
  • 140 convenience stores being sold

Like-for-like sales for the 26 weeks to period to 2 August dropped 2.7% compared with the same period last year.

Total turnover during the period was £8.1bn, falling 5.1% year-on-year.

Shares in Morrrisons closed down 2.8% at 170.9p in the wake of the gloomy figures.

Our take on Morrisons

Ed “I love the charm that Morrisons has, it has outstanding characteristics such as “Market Street” which in all honestly if they had any marketing sense they could market far better. They outclass M&S food a supermarket prices and they have more boots on the ground than any other supermarket (others have a higher % of night workers. Morrisons workers do the shop work while the store is open, to help customers and be “shopkeepers” – and that human interaction is something I can get behind. However sadly as I know first hand, they are working in the dark ages. The way they structure their staff is prehistoric, and the way they handle day to day running of their stores is shambolic. This unfortunately is down to how hard they press their staff when their staff are expected to acomplish as much as a staff member at say Tescos. But with inefficient working practice this can never be achieved which is why Morrisons fall short on everything they do” – Former Morrisons Manager

 

 

Comments

comments

Leave a Comment