Latest news with #Dubilier&Rice
Reuters
26-03-2025
- Business
- Reuters
UK supermarket Morrisons' sales growth slows
LONDON, March 26 (Reuters) - British supermarket group Morrisons' underlying sales growth slowed in its first quarter, reflecting a previously flagged cyber attack at its technology provider which hit product availability. The UK's fifth largest grocer, which has been owned by U.S. private equity firm Clayton, Dubilier & Rice since 2021, said on Wednesday its like-for-like sales rose 2.1% in its quarter to January 26, having been up 4.9% in the previous quarter.
Telegraph
24-03-2025
- Business
- Telegraph
Morrisons to axe hundreds of jobs and shuts cafes to relieve debt pressures
Morrisons is planning to axe hundreds of jobs and shut dozens of cafes amid a push to counter debt pressures and rising staff costs. The supermarket said it was proposing the closure of some cafes, in-store butcher and fish counters as well as smaller convenience stores across its estate, putting 365 workers at risk of redundancy. Some florists and pharmacies will also be targetted in the cost-cutting drive. Rami Baitiéh, the Morrisons chief executive, said the changes were a 'necessary part of our plans to renew and reinvigorate Morrisons'. He added they would allow Morrisons to 'focus our investment into the areas that customers really value and that can play a full part in our growth'. It comes just days before Morrisons is due to release its latest trading update for the first three months of the financial year. The company has been battling high debt costs since its takeover by Clayton, Dubilier & Rice (CD&R) for £10bn in 2021. In October 2021, its debt pile had rocketed to £6.2bn. For years, the high debt levels have meant Morrisons has had to pay out hundreds of millions of pounds in debt interest payments. In its latest financial year, high debt finance costs meant it recorded a pre-tax loss of around £500m. In the 16 weeks to the end of July alone, it was struck by a £110m debt finance bill. Morrisons has been racing to slash this debt pile since Mr Baitiéh took the helm in 2023, and last October announced a £331m deal to sell ground leases on 76 supermarkets. In November, it announced a major restructuring to reduce its debt pile to around £3.8bn. However, in January, Mr Baitiéh warned that the company was facing fresh headwinds to its turnaround efforts. He said Rachel Reeves's tax raid would force it to speed up a cost cutting drive, with the National Insurance costing it £85m alone. Mr Baitiéh said: 'These additional costs in the Budget were unwelcome, unexpected.' Under the shake-up announced on Monday, Morrisons said it was planning to shut 52 cafes, 18 of its takeaway food stations known as Market Kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies. While the significant majority of staff are expected to be redeployed elsewhere in Morrisons, the company said around 365 workers are at risk of redundancy. Morrisons said the changes came after a 'wide-ranging review' which flagged areas where the costs were too high for how much customers were using them. It said the decision to close parts of its stores would help 'mitigate recent significant cost increases'.
Yahoo
24-03-2025
- Business
- Yahoo
Morrisons to axe hundreds of jobs and shuts cafes to relieve debt pressures
Morrisons is planning to axe hundreds of jobs and shut dozens of cafes amid a push to counter debt pressures and rising staff costs. The supermarket said it was proposing the closure of some cafes, in-store butcher and fish counters as well as smaller convenience stores across its estate, putting 365 workers at risk of redundancy. Some florists and pharmacies will also be targetted in the cost-cutting drive. Rami Baitiéh, the Morrisons chief executive, said the changes were a 'necessary part of our plans to renew and reinvigorate Morrisons'. He added they would allow Morrisons to 'focus our investment into the areas that customers really value and that can play a full part in our growth'. It comes just days before Morrisons is due to release its latest trading update for the first three months of the financial year. The company has been battling high debt costs since its takeover by Clayton, Dubilier & Rice (CD&R) for £10bn in 2021. In October 2021, its debt pile had rocketed to £6.2bn. For years, the high debt levels have meant Morrisons has had to pay out hundreds of millions of pounds in debt interest payments. In its latest financial year, high debt finance costs meant it recorded a pre-tax loss of around £500m. In the 16 weeks to the end of July alone, it was struck by a £110m debt finance bill. Morrisons has been racing to slash this debt pile since Mr Baitiéh took the helm in 2023, and last October announced a £331m deal to sell ground leases on 76 supermarkets. In November, it announced a major restructuring to reduce its debt pile to around £3.8bn. However, in January, Mr Baitiéh warned that the company was facing fresh headwinds to its turnaround efforts. He said Rachel Reeves's tax raid would force it to speed up a cost cutting drive, with the National Insurance costing it £85m alone. Mr Baitiéh said: 'These additional costs in the Budget were unwelcome, unexpected.' Under the shake-up announced on Monday, Morrisons said it was planning to shut 52 cafes, 18 of its takeaway food stations known as Market Kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies. While the significant majority of staff are expected to be redeployed elsewhere in Morrisons, the company said around 365 workers are at risk of redundancy. Morrisons said the changes came after a 'wide-ranging review' which flagged areas where the costs were too high for how much customers were using them. It said the decision to close parts of its stores would help 'mitigate recent significant cost increases'. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Reuters
24-03-2025
- Business
- Reuters
UK supermarket Morrisons says 365 jobs at risk from store changes
LONDON, March 24 (Reuters) - British supermarket Morrisons on Monday said about 365 workers were at risk of redundancy after a review of store operations aimed at mitigating recent "significant cost increases". The UK's fifth largest grocer, which has been owned by U.S. private equity firm Clayton, Dubilier & Rice since 2021, said it planned to close 17 convenience stores, 52 cafes, 18 market kitchens, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.
The Independent
29-01-2025
- Business
- The Independent
Morrisons sales surge amid growing grocery market share
Morrisons sales jumped last year as the supermarket said 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, 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 to 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. 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 Chief executive Rami 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.' 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'.
