Historic Equal Pay Win For Tens Of Thousands Of Asda Workers

 https://www.linkedin.com/in/brian-moore-038b8112/recent-activity/all/

Tens of thousands of Asda’s checkout workers, customer service staff and shop floor assistants, most of whom are women, could be in line for historic payouts after the biggest ever private sector equal pay claim.

A court ruling has made clear that many of the roles on Asda’s shop floors, carried out mainly by women, are of “equal value” to the better-paid ones in the supermarket giant’s warehouses, which are predominantly filled by men.

Read the full article on the ITV website (Link in comments below)

NamNews Implications:
* It appears that this issue is head towards a conclusion
* ..that could cost Asda considerable sums in backdated ‘top-ups’ for workers
* The resulting uncertainties has to add to the current pressures on Asda
* A speedy resolution in terms of a negotiated settlement and known cost
* .could at least move this issue off the table..
* Allowing the company to focus on the recovery plan…?
hashtag#AsdaEqualPayDeal

Morrisons Hails Strongest Quarterly Performance In Four Years

 https://www.linkedin.com/in/brian-moore-038b8112/recent-activity/all/

CEO Rami Baitiéh’s turnaround programme at Morrisons appears to be picking up speed after the group delivered its strongest quarter since the start of 2021.

Over the 13 weeks to 27 October, the grocery retailer’s like-for-like sales increased by 4.9%, with total revenues up 4.8% to £3.8bn. The robust fourth-quarter figures meant that annual like-for-likes had grown 4.1% – a marked improvement on the 1.8% rise the previous year.

Full-year underlying EBITDA was up 11.2% to £835m on revenue that increased 3.8% to £15.3bn.

Morrisons noted that it had made good progress in improving product availability, with it up four percentage points on fresh goods. Its revamped More Card loyalty scheme also saw linked sales grow to 68% at the year end (76% today), whilst its discounter Price Match initiative now covers over 500 everyday items.

Morrisons also highlighted progress on tackling the large debt burden left over from the takeover by CD&R. The group’s debt is now down 40% from its peak, with CFO Jo Goff saying: “A year of broad-based operational progress has helped to deliver a significantly strengthened Morrisons.

We delivered a further £150m of progress on our working capital programme in the year, taking the total since the start of the programme to £450m, and have achieved £312m in our cost-saving programme in the year.”

Other highlights of the Morrisons year included the sale of its petrol forecourts to MFG for £2.5bn and the acquisition of 36 convenience stores in the Channel Islands.

The group’s convenience store estate now stands at over 1,600 stores after rapid growth in recent years.

“This has been a year of urgent reinvigoration and positive progress for Morrisons. Customer transactions increased, market share grew from Q2, and we saw positive switching from our competitors,” said Baitiéh.

He noted that improvements across the business had resulted in “better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme”, which was now starting to be reflected in its financial performance.

Baitiéh concluded: “I want to thank everyone at Morrisons for their commitment and energy every day and for playing their part in the significantly improved performance that we are reporting today.

Supermarkets, Convenience, Online, Wholesale and Myton Food Group all contributed to the improving picture, helping us serve our customers better.”

Morrisons did not reveal how it traded over the key Christmas period. However, Kantar data released earlier this month suggested the chain lagged well behind Tesco and Sainsbury’s.

NamNews Implications:
* Latest stats looking good
* Lowering the debt burden means reduced pressure on debt servicing..
* Perhaps time for suppliers to join with Morrisons new found optimism?
* (despite a probable Christmas lag vs Rivals?)
hashtag#MorrisonsRethink

Asda Restarts Search For New Chief Executive

 https://www.linkedin.com/in/brian-moore-038b8112/recent-activity/all/

Asda’s new Chairman, Allan Leighton, has restarted the group’s search for a Chief Executive to support his efforts to turn around the performance of the ailing supermarket.

The company has now been without a permanent CEO since the abrupt departure of Roger Burnley in August 2021 following a fall-out over strategy with TDR Capital. Co-owner Mohsin Issa subsequently took charge of operations in 2022 while a search for a new leader was launched.

A large number of people were approached, but Asda failed to attract a candidate despite the prospect of a lucrative pay package, said to be worth up to £10m a year. Reports at the time suggested that Mohsin’s control of the business had put off some experienced industry executives.

With Mohsin having relinquished the reins of the grocer at the end of last year, Leighton is said to be seeking a candidate who he can work alongside rather than a Chief Executive he can oversee as Chairman.

A report by The Telegraph stated that Leighton would retain significant day-to-day involvement in Asda’s strategy through his Executive Chairman role.

Asda hired Leighton at the end of last year following months of falling sales and market share. Initial moves have included strengthening the group’s leadership team and restructuring its regional management setup.

Leighton has vowed to “restore Asda’s DNA” by cutting prices and improving product availability. However, he has warned that it could take as long as five years to restore the supermarket’s fortunes fully.

Earlier this month, Leighton stated his turnaround plans would be based around moves to “satisfy the daily and weekly shopping needs of ordinary working people and their families, who demand value”.

Last week, it was reported that Asda is preparing to launch its biggest Rollback price cuts campaign in years.

NamNewsa Implications:
* i.e. Asda is seeking a candidate who can work alongside Allan Leighton…
* …rather than a Chief Executive he can oversee as Chairman.
* (Little or no learning-curve time available..)
* i.e. Someone that has worked with Alan previously might seem the best bet…
hashtag#Asda