Last updated 21st December 2022
Morrisons
Founded in 1899 in Bradford – where it is still based – Morrisons currently ranks as the fifth largest UK supermarket chain by market share with some 497 stores spread across England, Wales and Scotland. The chain also has eight regional distribution centres and a national distribution centre
The group’s focus was mainly in the north until 2004 when its acquisition of Safeway gave it a major presence in the south. Today, Morrisons has around 118,000 employees and some 9 million customers each week and it was a publicly-listed company until it was acquired by a US private equity firm Clayton, Dubilier & Rice in October 2021.
Morrisons’ acquisition of McColl’s in May 2022 through a pre-pack administration, significantly expanded its presence in the convenience sector; acquiring all of McColl’s 1,160 stores. Following approval for the deal, the group plans to shut 132 McColl’s stores and a store conversion programme will result in 1,000 Morrisons Daily stores trading within the next two years.
Under its new owner, the group”s various priorities include: to strengthen and broaden the business and be more competitive; serving customers better; integrating with communities; simplifying and speeding up the organisation; making more use of digital technology; emphasising hygiene and creating and scaling up for profitable growth. Recently, the group has embarked on a ‘fix, rebuild, grow, sustain strategy’ aimed at profitable and ‘capita-light’ growth.
In December 2022, Clayton, Dubilier & Rice raised £220m from the sale and leaseback of seven Morrisons warehouses. The company said the deal would help to finance further investment; in 2023, it plans to open a further five UK supermarkets and invest in its manufacturing operations.
Financials
To see the financials for Wm Morrison Supermarkets Ltd. go to Companies House and use company ID 00358949
Morrisons reported solid financial results for the 39 weeks to end-October 2021. Group revenues rose to £13.48 billion from £13.01 on a previous comparable basis although like-for-like sales, excluding fuel, were fractionally down. The group generated a free cash flow of £338 million and underlying profit before tax and exceptionals was £133 million in the 39 weeks to end-October, compared to £190 million in the period a year earlier. Net debt (including lease liabilities) stood at £2.95 billion, compared to £3.17 billion. Meanwhile, in late September 2022, the group unveiled results for the 13 weeks to end-July showing total revenue up 4.5% to £4.8 billion but like-for-like sales excluding fuel, down 3.1%. The company said the business exited the quarter in a stronger position, with good momentum which it anticipated continuing.
Operations
Morrisons is currently looking for sites for new stores, close to residential areas and typically involving 2-5 acres or existing buildings which can be converted. The group says it has an ambitious growth agenda to build on the success of recent store openings.
The retailer”s capital expenditure was worth a total of £368m for the 39 weeks up to end-October 2021 and some £539 million in the full year ended up to January 2021.
In the period up to October 2021, a further 12 of its stores went through a ”Fresh Look’ refurb programme. Morrisons is also developing a new food‑to‑go Market Kitchen concept which had been rolled out in eight stores.
Glenigan data
Glenigan data highlights some significant new store projects underway at Morrisons. In Nuneaton in Warwickshire, the group has submitted detailed plans which have been recommended for approval for a £9.3 supermarket, garden centre and petrol filling station where tenders have yet to be invited but work could start in summer 2023 and run for 10 months (Project ID: 21509555). Meanwhile in Wickford in Essex, detailed plans have been granted for a £7.15 million supermarket scheme on a former Co-op store site where work could start in spring 2023 and run for 12 months (Project ID: 21275294).
Conclusion
With an illustrious history, nearly 500 stores and a 9% share of the British grocery market -putting it fifth behind Aldi – Morrisons is set to remain a significant client for the construction sector. Its new store build programme might not have matched that of the discount retailers. But Morrisons remains ambitious to open new stores and its programme of refurbishing its stores, renovating McColl’s convenience to new formats and rolling out new initiatives such as its Market Kitchen concept should ensure it continues to be a regular source of work for the industry.
How to win work with Morrisons
A page on the group’s website here is devoted to supplying the chain and on information for suppliers. It includes forms which would-be suppliers can complete.
Meanwhile, a separate page on the group’s website here gives details of the chain’s property requirements.
Key contacts Laura Swales Property Manager – Development
Email: laura.swales@morrisonsplc.co.uk
Telephone: 0345 611 5000
James Smith, Senior Property Manager – North
Email: James.Smith@morrisonsplc.co.uk
Telephone: 0345 611 5000
Justin Lawrence, Senior Property Manager – South
Email: Justin.Lawrence@morrisonsplc.co.uk
Telephone: 0345 611 5000