Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
For quite a while, I believe that Morrisons (MRW) has lagged behind the competition in the supermarket sector. It’s been years behind Asda, Sainsbury’s (SBRY) and Tesco (TSCO) in terms of online shopping.
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Comments
Jonathan
It’s a nice idea, but MRW won’t make it work for a few reasons:
1) The card is way too late behind other stores. This means that by and large they wont attract new customers with it, although they might manage to keep current customers.
2) Current customer shopping habits will likely stay the same, because they are with MRW in the first place!
3) The card itself is extremely flawed. Cash on next shop does not.counter the budgeters which give cash in pocket you can spend elsewhere. This card basically puts them into a price war with Aldi and Lidl which has already been lost.
4) Online shopping. Tie up with Ocado has failure written all over it. Ocado have increased revenue, but average spend per customer is well below inflation and Ocado can afford a price war even less than MRW.
Far morw likely that MRW will continue to decline and be bought out in a couple of years.
Boanerges
Morrisons are missing the point. Shoppers are now looking for less outgoings, not some form of saving incentive system. Where do they get the management who dream up these schemes
David Russell
They should not price match. The problem is the management not the product. They have destroyed the business by following the herd. Anyone can sell something at less than cost but in the end they need profit and if they have to give it away to get sales become a charity.They need new management from the top down and a different business plan and stop dividend if they cannot afford to pay them. The big I am will not work.
Lawrie
Aldi and Lidl:no annoying pop music.Very quick staff who serve you in minutes.My last trip to Morrisons:4 people waiting at each of the few open tills,none for baskets only.I only had 3 items but refuse to serve myself.What do checkout staff get paid:£10 an hour? Aren’t there enough unemployed?