What a week, month, year for Morrisons
Take yourself back to 12 months ago where Morrisons was fully in the quagmire. Profit warnings, slipping market share and even a boardroom intervention from the Morrisons family caused chaos to the share price amid gloomy city speculation. More worryingly, the Group was stuck in an existential crisis. Supermarket grandee, David Potts was brought in and has led a rejuvenation of the brand with a return to the retail fundamentals of range, price and product. They aborted their convenience store operation, hired more frontline customer service staff at a time where most retailers cutting back and abandoned many of the projects they only ever half-heartedly believed in.
Leveraging their manufacturing arm they have negotiated a stellar deal with Amazon, which has immediately won their place back in the FTSE 100, with good cause. It can’t be long now before Amazon enters online groceries with a full service line although this development will serve Morrisons very well. On the same day Ocado’s stock dropped by 6.5% spelling woe for the online grocer. With Tesco, Sainsburys and Asda all in a somewhat difficult place, Morrisons is gaining customers and now looks the most able to fend off the charge of their German rivals. With loyal customers, a great team, price reductions and the Amazon and Ocado deals in place, the future looks bright for Morrisons.