With a new loyalty scheme, expanding Amazon partnership and plans to invest in communications, Morrisons is confident it will recover from the impact of Covid-19 over the coming year.
As part of the My Morrisons loyalty scheme, the supermarket has launched an app to keep track of savings and provide personalised offers.
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Despite a spectacular fall in profits, CEO David Potts praised the supermarket group’s entrepreneurial spirit and online growth, which has been helped by its tie-up with Amazon, with speculation mounting around a possible takeover.
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Currently serving as Sainsbury’s group head of brand communications and creative, Rachel Eyre will join Morrisons in 2021 as the supermarket looks to foster a new generation of retail talent.
With online sales up fivefold and a Deliveroo ‘dark kitchen’ already being trialled in Manchester, Morrisons is bullish about its ability to emerge from Covid-19 a “broader, stronger business”.
Partnerships with Amazon and Deliveroo put Morrisons in a “very good place” as consumers switch to grocery home delivery and are forced to buy more fresh food through supermarkets.
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Morrisons is introducing new ways of delivering groceries to customers, including a range of simple-to-order food parcels, more delivery slots and using 100 extra stores to pick up shopping.
Morrisons blamed a challenging Christmas trading period as competitors shifted to promotions, but admits the supermarket “missed” the Black Friday halo effect after pulling back from the discount event.
Morrisons looks set to ditch the big Christmas TV ad spot for a second year, instead opting to spend its marketing money on staff and own-label goods.
Morrisons is paving the way for a closer relationship with Amazon as it sees big opportunities in the ultra-fast delivery space.
Many retailers moved away from the big brand campaigns in favour of product-focused ads this Christmas but as retailers reveal their festive performance there are signs this may not always have been the right strategy to take.
Despite marginally beating analysts’ expectations for the Christmas period, Morrisons will continue to cut prices in 2019 to make sure it can “be there for customers” this year by offering “even greater value for money”.