What's Happening?
Morrisons has reported a significant increase in sales for the year ending October 2025, with a 2.8% rise in like-for-like sales and a 3.2% increase in total revenue, reaching £15.8 billion. The supermarket's CEO, Rami Baitiéh, attributes this growth to the company's strategic focus on the 'value triangle' of price, loyalty, and promotions. This approach has been particularly effective during the Christmas period, where sales of fresh food and premium products saw notable increases. Morrisons has also expanded its online presence through partnerships with Just Eat, Uber Eats, and Amazon, contributing to its market share growth. Despite these successes, Morrisons faces competition from Lidl, which is closing in on its market share.
Why It's Important?
The emphasis
on the 'value triangle' highlights the increasing importance of affordability and customer loyalty in the retail sector. As consumers become more price-sensitive, supermarkets like Morrisons must innovate to maintain competitiveness. The growth in online sales and the expansion of loyalty programs indicate a shift towards more personalized and convenient shopping experiences. This strategy not only helps retain existing customers but also attracts new ones, particularly in a competitive market where rivals like Lidl are gaining ground. The success of Morrisons' approach could influence other retailers to adopt similar strategies to enhance customer engagement and drive sales.
What's Next?
Morrisons plans to continue its focus on value by cutting prices on over 2,500 items, including fresh produce and everyday essentials. The company aims to further personalize its loyalty offers to increase customer engagement. As the market remains highly competitive, Morrisons will need to sustain its efforts in price competitiveness and customer satisfaction to maintain its market position. The ongoing investment in convenience and online services will be crucial in adapting to changing consumer behaviors and preferences.
