Morrisons expanding UK reach
Supermarket operator strong despite Safeway uncertainly
May 22 2003
Morrisons is expanding its presence in the UK, moving into new trading areas as well as growing market share.
Chairman Sir Ken Morrison told the supermarket operator’s annual meeting that “win lose or draw in the Safeway saga, we have a strong company well equipped to continue to prosper in these increasingly competitive times.”
Morrisons has seen increased sales through shoppers making more visits to our stores and spending more on each visit, with its share of the UK grocery market reaching an all time high of 6.2 per cent in March.
Sir Ken said that current trading is very strong, with total sales for the first 14 weeks of the new financial year showing an increase of 14.2 per cent, with like-for-like sales up 8.4 per cent in total, and 6.9 per cent excluding fuel sales. “These figures show we are setting the pace in our industry. I view the future with much confidence and look forward to another year of good steady progress.”
During 2003 and 2004, Morrisons will open 15 new stores open, creating 4,000 jobs. The company will expand into Scotland for the first time with stores in Glasgow, Kilmarnock and Falkirk.
Morrisons sparked the bidding fever of Safeway with its offer in January, initially recommended by the Safeway board. Sir Ken said: “In spite of the fact that our case was totally dissimilar to the other three companies we were all referred onward to the Competition Commission. I can tell you we were both surprised and disappointed by this decision.
“It must have been apparent that the effect of our intended merger with Safeway in terms of reducing competition was absolutely minimal when compared with the impact which could be caused by the larger more powerful companies.”
He added: “We remain firmly convinced that Morrison and Safeway would be in the best interests of the shopping public. Four major national groups, rather than three, would simply offer a wider market and do more to stimulate a good competitive climate – this must favour the consumer and also the supplier, whether they be manufacturers, growers or producers.”
