Morrisons Shaking Up Trading Team As Part Of Plan To Relaunch Market Street Concept

Morrisons is reported to be overhauling its trading team as it prepares to relaunch its Market Street proposition as part of its growth strategy.

According to trade publication The Grocer, the supermarket’s new Group Trading Director, Andrew Staniland, who joined from Iceland last month, is leading the shake-up.

This has involved a consolidation of its category buying teams, with five layers of reporting being reduced to three.

Morrisons stated that the move has led to the creation of more than 10 new roles, including three director roles. It is believed that some category director roles will be merged into heads of trading areas, while buyers will now also be known as traders.

The shake-up is also said to include the introduction of monthly virtual supplier updates.

The report by The Grocer noted that a key part of Morrisons’ turnaround plan is to create the ‘Market Street of tomorrow’, with its Chief Executive Rami Baitiéh having earmarked the concept as a point of difference to its rivals.

Staniland told The Grocer: “Since I stepped through the door a few weeks ago it was clear to me we have a very capable team and a golden opportunity to make some magic at Morrisons.

“I’ve been listening hard to our customers, colleagues and suppliers and learning a great deal about where we are and what we need to focus on – and the plans are coming together really well now.”

NamNews Implications:

• ‘Creation of more than 10 new roles, including three director roles’...
• ...means suppliers should reassess Morrisons’ account management structures to reflect probable changes in decision-making process.
• And deep down, attempting to assess the impact on individual supplier category mix.
• Meanwhile, their intent to create the ‘Market Street of tomorrow’ is worth attention…

Morrisons Bolsters Management Team With Execs From Lidl, Asda And Carrefour

Morrisons is further strengthening its senior management team with three new hires and two internal promotions.

Matt Heslop has been appointed as Director of Convenience and Wholesale, starting early next month. He has worked at Lidl for over 20 years in a number of roles, most recently as Chief Operating Officer and Board Member of Lidl UK.

Matt McLellan has been hired for the newly created role of Group Data and Media Director, which he take on later this year. He will join Morrisons from Asda where he was Vice President – Customer. At Asda, McLellan was responsible for the design and launch of their loyalty proposition and for developing a range of high-profile customer programmes and initiatives.

Meanwhile, Bruno Lebon has been appointed as Group Trading Director, Non-Food, working with Andrew Staniland who started in early February as the supermarket’s Group Trading Director. Lebon has over 39 years of experience at French grocery giant Carrefour, most recently as Executive Director of Supermarkets and Hypermarkets.

All three new hires will report directly to Chief Executive Rami Baitiéh.

Separately, Martin Dawson, who in February last year was appointed interim Operations Director – Retail, has now formally been appointed as Group Retail Director.

Charlotte Exell, the Online Operations Director, has been promoted to take on full responsibility for the Morrisons Online offer in the newly created role of Online Director.

In addition, Rachel Eyre, Chief Customer and Marketing Officer, will be returning to Morrisons on 3rd March from maternity leave.

Baitiéh commented: “I’m very pleased to welcome three outstanding retailers to the Morrisons leadership team and to warmly welcome Rachel back from her maternity leave. All the new joiners have exceptional records in their fields and bring deep experience, a history of delivering growth and a clear customer focus. As Morrisons continues its re-invigoration and growth, their skills and their passion for the customer will make them a powerful addition to our team.

“Martin Dawson has made a significant impact in his new role over the last year and I am delighted to confirm him in the key role of Group Retail Director. And Charlotte Exell has played a vital part in the recent growth of our online business and I’m confident that under her leadership Morrisons.com will go from strength to strength.”

The appointments come weeks after Morrisons posted its strongest quarterly sales growth figures since the start of 2021 as Baitiéh’s turnaround programme picks up speed.

NamNews Implications:

• Significant management changes at Morrisons.
• All wanting to flex and apply their experience optimally.
• Maybe time for Morrisons’ suppliers to reassess team fit with the new lineup…
•  …or risk rivals moving first?

Dalton Philips - a casualty of a time-warp breakout?

Appointed to pull Morrisons into the 21st Century via an injection of IT, global vision and democracy, Philips managed the five-year programme of heavy lifting, but was undone by the middle-squeezing impact of Waitrose and the discounters, at a time when a return to basics was required in retail…

In the interim, with his down-to-earth, common-sense approach, Andrew Higginson will reduce the Morrisons’ message to basics and go for growth via a shift from back to front margin, a focus on pricing and a search for a like-minded replacement CEO.

The new team will build on Philips’ improvement in operating systems, and moves into convenience and online.

Within the business, the new chairman and CEO will sound and feel like Ken Morrison, which will not only provide internal reassurance, but will also ensure a couple of years’ silent tolerance from at least one key shareholder…

Back to the future for Morrisons?
Meanwhile, NAMs need to anticipate a return to the old Morrisons, but manage a retailer that is super-charged with the benefits of a visit to the future… 

Short-sellers target Sainsbury's on Tesco fears

News in The Telegraph that short-sellers in the stock-market are betting that Sainsbury's share-price will fall as a result of Dave Lewis sacrificing Tesco margins to regain market share, offers a valuable insight-tool for NAMs wishing to anticipate additional pressures on the retail-buyer in the supplier-retailer relationship i.e. buyers are increasingly remunerated by share-options in their own company.

In short-selling Sainsbury's shares, the market believes that Tesco has more scope for cutting prices than Sainsbury's bottom line would allow.

As you know, short-selling is a process whereby stock-market traders bet that the share-price will fall by borrowing shares of a company, then selling  them 'short' at the current price. They then hope to buy them in the market at a lower price when it is time to fulfill the contract, thus making a profit on the deal...

The percentage of a company's shares 'on loan' in this way can be tracked (see Short Tracker) and the greater the percentage, the more shorting of the stock is going on, meaning that the market believes that the share-price will fall.

For instance, Short Tracker's details this morning on the top most-shorted retailers are as follows: (the % is the amount of a company's shares currently 'borrowed')
-  WH Smith        11.4%
-  HMV                 8.1%
-  Sainsbury's         8.0%
-  Ocado               5.6%
-  Morrisons          4.72%
-  Debenhams        3.13%

Another NAM tool to add to your repertoire!

Thanks to Richard for his persistence re this short-sell pointer.

NB. Should you be tempted to try some short-selling, it must be emphasised that the bet is on the price going down. If, for whatever reason (i.e. a sudden takeover bid) the share price rises, and the rise can be infinite, the short-seller is still legally liable for fulfillment of the contract, thereby losing the difference between the latest purchase price and the selling-price on the sell-contract.....!

NB. We wish to stress that we are in no way recommending dealing in shares, we are simply making observations re market activity in retail and other stocks in which our readers may be interested as part of the supplier-customer trading relationship.