Morrisons Sales Affected by Lack of Online Presence

Posted on 10 November, 2013 by Kirsten Kennedy

The supermarket sector is one of the most competitive in British retailing, with the top four constantly attempting to outdo each other with special offers, price comparisons and consumer ratings. However, while Tesco, Asda and Sainsbury’s have tended to post relatively successful sales figures of late, the same cannot be said for Morrisons.

For the last quarter, comprising of the three months to the end of November, Morrisons experienced a drop in like for like sales of 2.4 per cent excluding fuel sales. The chain believes that this is due to a significant lack of online presence, as it is the last supermarket brand in the UK yet to implement an online home delivery service.

However, things could soon change as Morrisons has now revealed that it will launch its online ordering service in the New Year. From January, customers will be able to conduct their weekly grocery shop online and have items delivered straight to their door, bringing the supermarket chain level with competitors for the first time in recent years.

Deliveries will first be offered in Warwickshire in order to assess demand and “trial run” the efficiency of the service before the initiative spreads to stores nationwide. It is hoped that 50 per cent of Morrisons customers will be able to take advantage of this additional service by the end of 2014.

As online grocery shopping is growing at a rate of around 16 per cent year on year, it is imperative that Morrisons acts quickly to avoid becoming obsolete in the supermarket sector. Yet an online service is not the only area in which Morrisons seeks to improve next year – convenience stores have become immensely popular with consumers, with a growth rate of around 20 per cent per year, and as such is a lucrative market for supermarkets seeking expansion.

In a statement, Morrisons blamed its lack of presence in these two areas for the last quarter’s poor performance, saying; “Consumer confidence remains subdued and we continue to see heavy promotional activity across the industry.

“As previously indicated, our low exposure to the sector’s key growth areas of convenience and online continues to impact the sales performance of the group.”

Morrisons’ “M local” convenience network has already begun to take root, with 36 new commercial property outlets having opened during the quarter. In total, there are now 69 M local stores in the UK, a figure which is expected to grow by around 100 in the 2014-2015 financial year.

While Morrisons insists that the past quarter’s figures were largely in line with expectations, many analysts were surprised that like for like sales fell by such a high amount. Hopefully the store’s acclaimed Christmas offering will allow the UK’s fourth largest supermarket chain to meet its full year targets and get 2014, and the changes it will bring, off to a strong start.

Do you think the problems identified by Morrisons are truly the root cause of the problems faced by the chain, or should bosses be analysing store offerings in order to better meet consumer demand?




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants