Morrisons Looks to Offer Online Grocery Shopping
Supermarket chain Morrissons are beginning trading online along with building new convenience stores and renovating current ones in an effort to shake up what have been substandard sales so far in 2012
One of the UK's largest supermarket chains Morrisons is making some dramatic changes in an aim to breathe some life into their business following disappointing sales so far in 2012. The aim is to increase the number of M Local stores around Britain, the smaller convenience branches of the chain and also to foray into the world of online grocery sales.
Having had a profit reduction of around £9million in the 6 months leading up to July this new initiative comes as a way of attempting to get a fairer market share with its closest competitors, Sainsbury's and ASDA who both have far more smaller convenience stores than Morrisons and both offer online grocery shopping.
Along with the creation of new convenience stores, which Morrisons announced was a "prelude" to the rollout of convenience stores they have planned for 2013/14, 38 existing stores are undergoing renovations to what is being called the "Fresh Format" which will include a new design around produce sections and counters, not to mention a greater selection of fresh foods on offer.
Many analysts have cited Morrisons lack of convenience stores and online shopping as the main reason they have fallen behind their rivals, but despite this, the supermarket are not jumping feet first into online trading. They are beginning their online adventure with the creation of Morrisons Cellar, an online wine site which they hope will become one of the definitive online wine merchants in the UK.
This start however, looks like it will be just the toe dipping trial process for what will eventually become a full online grocery shopping experience which would make Morrisons a more multi-channel store chain and allow them to catch up with their competitors.
The renovations to the existing stores, the introduction of more convenience stores and the launch of an online shop will undoubtedly give Morrisons a better second half of the year than the first half, but whether those improvements will continue with the further planned developments is yet to be seen.
Written by Jason John Mills