I read an interesting article from Drayton Bird about Morrison’s mistaken marketing strategy.
It ties in with my own thoughts on Morrison’s.
I don’t know whether it’s universal, but I’ve noticed that businesses that are about to be sold/taken over/go bust stop maintaining their premises as well as they used to.
So I began to wonder about Morrison’s when I noticed the huge set of wooden yard doors at their store in Heywood. The doors had previously been painted but the paint was flaking really badly and looked as though they hadn’t been looked after for several years. In my book that means that another supermarket will take them over in the next few years.
And they are now chasing lower prices, which they can never win. Aldi and Lidl have that one sewn up at the moment and have been very successful with it. One reason they’re winning is by having less staff than other supermarkets, including Morrison’s.
So Morrison’s will be making much less profit than previously and will shareholders like that? Is the writing on the wall? I think so.