GlobalData : Swift adoption of new channel opportunities leaves Morrisons in good stead for 2021

05 Jan 2021
Swift adoption of new channel opportunities leaves Morrisons in good stead for 2021 Posted in Retail

Following today's release ofMorrisonsfigures forQ3 and Christmas Trading FY2020/21;

Thomas Brereton, Senior Retail Analyst at GlobalData, a leading data and analytics company, comments:

'Morrisonshas announced strong - albeit expected - Q3 (13 weeks to 1 November) and Christmas results, with results improving intandem with tougher restrictions across the UK from November onwards, culminating in+9.3% l-f-l sales forthe three weeks to 3rd January.

'Morrisons' success over the period is largely driven by its expanding online offer, a portfolio that now includes 'Morrisonson Amazon', a strong partnership with Deliveroo and innovative propositions such as its food boxes. As a result, Morrisonsclaims that online sales have more than tripled inrecent Q4 trading, a growth figure that will be hard forrivals to match. While analysis must bear inmind that, pre-COVID-19, Morrisonshad a smaller online operation than its competitors (and thus easier to achieve higher growth), it has embraced the shift inconsumer spend from offline to online as well as any ofthe major players. This has clearly not come at the expense ofstore development however, opening three stores during the period (bringing the total to six forthe year) and cleverly adapting tired McColl's stores into fresher MorrisonsDaily fascias (31 intotal, with conversions likely to continue apace in2021).

'As the saga ofCOVID-19 rolls on, alongside dealing with the impact ofa rushed Brexit deal, Morrisonsmust play to its strengths in2021, particularly emphasising to customers the extent ofits local produce sourcing compared to competitors while ensuring that it keeps prices as low as possible to keep pace with a newly value-driven Tesco and the discounters inthe face oftough economic conditions.'