
Product availability still recovering after tech outage, says Morrisons
Morrisons has said the availability of products in its stores has still not fully recovered after a major IT systems outage before Christmas.
The UK's fifth-largest supermarket chain said its recent turnaround progress was 'set back' by the issue, which has caused weaker sales growth in recent months.
Boss Rami Baitieh said the company was unable to see its product availability and stock levels for four days after a cyber incident hit its technology supplier, Blue Yonder.
We found a work around very quickly but our availability fell significantly and we very sadly let down some customers. The incident did set back our progress
Morrisons chief executive Rami Baitieh
'We found a work around very quickly but our availability fell significantly and we very sadly let down some customers,' he said.
'The incident did set back our progress.
'Our availability is improving but it is not yet back to where it was before the incident, although product availability is still better than we were a year ago.'
Chief financial officer Jo Goff said Morrisons expects to recover costs caused by the incident as it seeks to make a claim with its insurers.
The group added that sales for the current quarter, which covered the key Christmas period, were positive but saw slower growth than the previous quarter.
It came after Morrisons' sales jumped last year, with the supermarket saying it took market share from competitors and grew its loyalty card scheme.
The company said like-for-like sales rose 4.1% in the year ending October 27, while earnings jumped to £835 million from £751 million in the previous 12 months.
The annual results did not cover the key Christmas trading period, when Morrisons suffered IT issues of its own, causing delivery issues and forcing it to cut the price of items including turkeys and Champagne for some customers.
But the supermarket did show its best quarter since 2021 for the three months to October 27, when sales rose 4.9% compared with the previous year.
Morrisons, which has its headquarters in Bradford, West Yorkshire, and employs more than 100,000 people across the UK, has been owned by US private equity firm Clayton, Dubilier & Rice since 2021.
Mr Baitieh said: 'This has been a year of urgent reinvigoration and positive progress for Morrisons.
'Customer transactions increased, market share grew from Q2 and we saw positive switching from our competitors.
The improvements across the business have resulted in better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme
Morrisons chief executive Rami Baitieh
'The improvements across the business have resulted in better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme.'
It comes after Morrisons said it would axe more than 200 jobs as part of a cost-cutting plan, joining Sainsbury's in reducing headcount in the months after the October Budget.
The move followed Mr Baitieh warning that supermarkets faced an 'avalanche of costs' after Chancellor Rachel Reeves increased taxes for employers.
Morrisons was one of more than 70 businesses, including Tesco, Asda and Sainsbury's, that told Ms Reeves in an open letter that the changes announced in the Budget mean price rises are a 'certainty'.
It said changes to national insurance contributions would push its costs up £75 million a year from April, with an extra £10 million of costs expected due to the impact of the changes on third party partners, such as security staff in its shops.

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The Sun
15 hours ago
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SHOPPERS have been rushing to buy a discontinued Mars chocolate that's back on shelves after 11 years. The brand has brought back white chocolate Maltesers with customers already spotting it on their weekly shop. 1 Mars said both fun sized and sharing packs would launch in supermarkets and independent stores from June 16. However, the chocolates appear to already be on sale at one major supermarket - Morrisons. Posting on the Newfoodsuk Facebook page, one eagle-eyed customer shared a photo of one of the returning packs in their local branch. The post has received more than 600 comments and around 1,000 likes from fellow eaters, with plenty keen to get their hands back on the chocolates after years. One said: "I was addicted to these when I was in school. Only white chocolate I liked." Another, tagging a Facebook friend, said: "Been craving these for years so we must get them." Meanwhile, a third chipped in: "WHAAAAAT!!!! They've finally brought them back." A fourth added: "Omg I used to love these when I was younger." Morrisons is selling the white Maltesers in three different size packs on its website, with prices starting from £1.05. Customers can buy a 30g pack for £1.05, 74g pack for £2.50 or a larger 126g sharing bag for £2.95. We have asked Morrisons how many branches the chocolates are available at and if they're a permanent addition and will update this story when we've heard back. The return of the white Maltesers comes after shoppers pleaded with Mars to bring them back. The treat first launched in 2003 but was taken off shelves back in 2014. The spin on the classic milk chocolate Maltesers was originally launched as a seasonal product but was made permanent due to its popularity. The clamour to see the white chocolates back got so loud a petition was started in 2017 calling for their return. OTHER CHOCOLATE NEWS It comes as Cadbury launches a new Dairy Milk flavour bar in the UK this month - Dairy Milk Iced Latte. The new bar combines classic Dairy Milk chocolate with a creamy coffee filling and crunchy biscuit pieces. Four limited edition bars have also been introduced, with packaging that changes based on the temperature. The chocolate maker also recently teased the launch of a new Cadbury White Dipped Twirl bar. Details on the new limited edition flavour are thin, although some smaller online retailers are selling it from 99p. Lidl shoppers have been going wild for a new Dubai-style pistachio spread landing on shelves. The Della Sante chocolate cream spread combines the flavours of the insanely popular chocolate but in spreadable form. The pots cost £4.99 or £3.99 for Lidl Plus members. How to save money on chocolate We all love a bit of chocolate from now and then, but you don't have to break the bank buying your favourite bar. Consumer reporter Sam Walker reveals how to cut costs... Go own brand - if you're not too fussed about flavour and just want to supplant your chocolate cravings, you'll save by going for the supermarket's own brand bars. Shop around - if you've spotted your favourite variety at the supermarket, make sure you check if it's cheaper elsewhere. Websites like let you compare prices on products across all the major chains to see if you're getting the best deal. Look out for yellow stickers - supermarket staff put yellow, and sometimes orange and red, stickers on to products to show they've been reduced. They usually do this if the product is coming to the end of its best-before date or the packaging is slightly damaged. Buy bigger bars - most of the time, but not always, chocolate is cheaper per 100g the larger the bar. So if you've got the appetite, and you were going to buy a hefty amount of chocolate anyway, you might as well go bigger.