Aldi overtakes Morrisons to become fourth biggest supermarket

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Morrisons installs AI cameras to improve availability



Morrisons is racing to employ thousands of AI-powered cameras across its UK stores by the end of the year, after trials showed they significantly improved availability and increased the efficiency of staff.

The supermarket has become the first UK retailer to make use of the US-originated technology, in a tie-up with Seattle-based AI company Focal Systems. It plans to roll the cameras out across its UK store estate by the end of the year.

CEO Rami Baitiéh has identified improving patchy availability as the key priority for his turnaround at the retailer, with the cameras able to provide real-time on-shelf data and automatically direct staff to where stocks are running low.

But Focal Systems says its technology has the capability to automate all decision-making in store, from merchandising, ordering and pricing to staffing and task and labour management.

The Grocer understands Morrisons has seen significant increases in availability scores in stores which have been piloting the technology, and hopes it will allow staff to spend more time focusing on delivering customer service, another key focus for Baitiéh.

It is also believed to be part of a plan by the former Carrefour boss to improve communications with suppliers about where customer priorities lie.

Whilst at Carrefour, Baitiéh developed a so-called ‘555 matrix’, which focused on staff always being available to serve the customer, and which he said hinged on getting availability right.

“The products must be available,” he once said.

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Well, there's a surprise: Shelves are less empty when staff are being monitored by cameras 24/7.

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Aldi overtakes Asda



Aldi has overtaken Asda to become Britain's third biggest supermarket, analysis shows.

It is the latest blow for the grocer, which has been losing market share to Aldi and fellow discounter Lidl since a £6.8billion takeover led by the Issa brothers saddled it with huge debts.

Co-owner Mohsin Issa has vowed to restore Asda as the UK's second biggest food retailer ahead of Sainsbury's.

But data from NIQ shows Asda's growth is stalling, with sales up just 0.8 per cent in the past 12 weeks – the weakest performance of any major food retailer.

A closer look at the figures reveals that its market share now lags Aldi's. Asda accounted for 11.7 per cent of the grocery market compared with Aldi's 12.2 per cent in the 12 weeks to March 23.

The news comes as Asda delays publication of its annual results. They were due last month but are not expected for another few weeks, sources say. No reason has been given.

In two decades, the German-owned discounters have come from nowhere and now take £1 of every £4.50 spent at British grocery store checkouts.

Former Lidl UK boss Ronny Gottschlich has said he expects the discounters' combined share will surpass that of market leader Tesco 'by 2027 at the latest'.

Aldi, which has more than 1,000 stores in the UK, is set to open another 35 this year but its pace of expansion has slowed recently.

Clive Black, of Shore Capital, said Aldi's growth was 'unsustainable', while Asda's trading momentum was 'worrying'.

Asda said other industry data, such as from Kantar, show it is still ahead of Aldi. And a source close to the company said: 'Market share data ebbs and flows, with gains and declines for grocery retailers each year.'