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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Leader Live
14 hours ago
- Leader Live
Wrexham and Flintshire chip shops aim for title award
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At Christmas 2024, he donated presents for the patients at Nightingale House Hospice to give to their children and grandchildren. Haci said: "I feel very happy to be in the top 10. As Chip-O-Dee owner we prepare and present our food with lots of effort. So to see us as Chip-O-Dee on the top 10 shows our customers' reward. "It would mean a lot for me to win because Chip-O-Dee always offers good quality flavours. It would mean a lot for me to see our customer feedbacks. "People come back to Chip-O-Dee because we offer our customers delicious and quality meals with a friendly welcome. Customer satisfaction is valuable to us, and presenting quality food is important for us. "We thank all our customers who choose us." The Big Fish - Chester Street, Mold Alex Valyandis (centre) and the team at The Big Fish in Mold. Alex Valyandis took over The Big Fish in Mold in 2022, and hasn't looked back. 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Gwersyllt Fish Bar - Dodds Lane, Gwersyllt Andrew Mertakkas, Jason Mertakkas and Leonardo Mertakkas from Gwersyllt Fish Bar, Wrexham. Brothers Jason and Andrew Mertakkas currently run the Wrexham chip shop but the business has been in the family since 1984. On reaching the final, Jason, 47, said: "It was a bit of a surprise. But we know we're one of the best, and are very happy and privileged to be nominated. "And it's nice to be recognised for our hard work. "It's a great business to be involved in, it's a lot of hard work but it's very enjoyable, we love it." On why their customers remain so loyal, Jason added: "All our staff are very friendly, we're a likeable place to go. "The food is top class, we put a lot of effort into getting the best products out there. "To win would mean a lot, and would help improve business to have been named the best in the region but even if we don't win, to have got this far is an achievement." 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The full top 10 hoping to get your vote: • Bellevue Grill and Fish Bar, Wrexham • Borras Park Fish Bar, Wrexham • Chipodee, Wrexham • Crystals Fast Food, Mold • Gwersyllt Fish Bar, Wrexham • Jones' Fish and Chip Shop, Wrexham • Josie's Chip Shop, Rhosymedre • Kingsley Fish Bar, Wrexham • Stubby's Fish Bar, Llay • The Big Fish, Mold
Daily Mail
16 hours ago
- Daily Mail
The cheap foreign meat flooding Britain's supermarket shelves: Farmers' fury over rise in beef and chicken imports from countries 'with lower animal welfare standards'
Cheaper chicken and beef from Australia, Poland and Uruguay is being increasingly seen at UK supermarkets, angry British farmers warned today. Chains such as Morrisons, Sainsbury's and Asda are importing meat from countries with lower animal welfare standards, according to the National Farmers' Union. Sirloin steak from Australia, raw chicken from Poland, sirloin and ribeye steaks from Uruguay and wagyu beef from New Zealand have all been spotted on UK shelves. Supermarkets are being accused of a 'huge betrayal of the UK's hard-working family farms' as they try to source cheaper imports to help keep their prices down. The NFU said the shift comes at a time when farmers in Britain already face an 'unprecedented number of challenges' amid concerns over recent trade deals. The union also pointed out that British livestock farmers adhere to robust standards, with consumers advised to look for the Red Tractor logo carrying the Union Jack. 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And a Sainsbury's spokeswoman said: 'We're proud to work with thousands of British farmers year-round and the vast majority of our beef range is sourced from the UK and Ireland. We have no plans to change this approach. 'All of our suppliers also have to meet the same rigorous quality standards, regardless of where the product is sourced from. 'These seasonal products account for just 0.1 per cent of our beef range and are an example of where there are times we may also source from elsewhere like New Zealand, so that we can continue to meet customer demand. 'The country of origin is clearly labelled, to help our customers make informed choices when they shop with us.'
Glasgow Times
17 hours ago
- Glasgow Times
Morrisons free Pyrex dishes worth £30 with More Card stamps
More Card Stamps were introduced in February as an added bonus to the popular Morrisons More Card loyalty scheme. The window to earn stamps has now closed but customers have until Sunday June 22 to redeem their existing stamps. Hundreds of thousands of customers have already swapped their stamps and over two million Pyrex products have been claimed so far. Due to its popularity more stock is arriving in stores and it is being displayed near the checkouts so that it is easy to find. Morrisons is now urging customers to be quick and not wait until the deadline to ensure they don't miss out - especially if there is a particular Pyrex product they have been saving for. The range of top-quality Pyrex containers is exclusive to Morrisons and includes a hand pump that ensures contents stay fresher for longer - ideal for busy households looking to save time and reduce food waste. Compact 600ml containers that are perfect for snacks or meal prep or spacious 2600ml dishes that can store a hearty family lasagne are available. The products include: 600ML Pyrex (round) 800ML Pyrex (rectangular) 1100ML Pyrex (round) 1500ML Pyrex (rectangular) 1600ML Pyrex (round) 2600ML Pyrex (rectangular) Hand pump Recommended reading: Lilly Chattoe, Morrisons Senior Loyalty Marketing Manager, says: 'Our More Card Stamps loyalty program has been incredibly popular, with fans of the Pyrex range being quick to collect their stamps in exchange for a product or two, or more. "As we reach the final week of the offer, we're reminding customers that haven't yet redeemed their stamps to do so quickly before it runs out.'. Alongside More Card Stamps, Morrisons customers get exclusive More Card Prices in-store and online, and when a customer has saved 5,000 More Card Points they will receive a Morrisons Fiver.
