Rami Baitiéh marks a year leading Morrisons with significant changes.
- Debt reduction efforts have improved Morrisons’ financial health.
- Customer engagement initiatives have been a focal point.
- Morrisons has made strategic investments in its loyalty scheme.
- Staff training and structural changes are underway to enhance efficiency.
Rami Baitiéh, celebrating his first year as CEO of Morrisons, reflects on a period marked by considerable transformation. With experience from Carrefour, Baitiéh expresses satisfaction with the progress made possible by dedicated employees and loyal customers. He emphasises a commitment to growing the business further, noting the importance of rapid decision-making, cultural shifts, and digital advancements.
The retailer has addressed financial challenges left by a substantial debt from a previous acquisition. By selling supermarket ground leases to Song Capital and disposing of its forecourt business, Morrisons has reduced its debt by 41% to £3.6 billion. These moves have enhanced Morrisons’ ability to remain competitive in a market sensitive to price changes.
Understanding customer needs has been central to Baitiéh’s strategy. He has introduced monthly customer roundtables, allowing direct feedback and engagement. This approach also extends to store managers, who hold regular shopper meetings to discuss pricing, products, and services. Customer insights have been crucial in realigning the company’s offerings.
Morrisons has reinvigorated its loyalty programme by expanding More Card offers and integrating them with Amazon and convenience stores. The loyalty scheme now features hyper-personalised offers, aiming to increase the proportion of transactions involving the loyalty programme from 50% to 70%.
To address product availability, Morrisons has deployed AI-powered cameras across stores. This technology boosts efficiency by providing real-time data on shelf stock levels, thus freeing staff to focus on customer service. The partnership with Focal Systems marks a pioneering step in adopting US-based AI technology in UK retail.
Efforts to remain price competitive have included the introduction of Aldi and Lidl price matches, covering a wide range of everyday products. These strategies ensure Morrisons can offer competitive pricing while supporting British farming by prioritising British-sourced products in their price match list.
The establishment of The Sir Ken Morrison Leadership School represents an investment in developing future leaders. The programme combines leadership and technical training, with mentorship from prominent figures like Morrisons Chair Sir Terry Leahy. The initiative aims to equip staff with skills necessary for career advancement.
Baitiéh aims to expand Morrisons’ presence by opening additional convenience stores, targeting 2,000 stores by 2025. Recent store acquisitions in the Channel Islands and partnerships with delivery services signify a strategic push into the convenience and online market sectors.
Significant changes in senior management have reshaped the leadership team, with new appointments reflecting a focus on key strategic areas like trading and convenience. This restructuring is part of a broader plan to refresh the company’s approach and improve operational efficiency.
The company has also streamlined its logistics operations, reducing management roles and adjusting shift patterns to boost productivity. Nearly 300 roles were consolidated into fewer management positions, with the introduction of new shift systems to enhance efficiency.
Rami Baitiéh’s first year at Morrisons has been transformative, focusing on financial stability, customer engagement, competitive pricing, and operational efficiency.
