Aldi overtakes Morrisons to become fourth biggest supermarket

[dutchman]

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.

[dutchman]

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

[dutchman]

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.'

[dutchman]

In case there was any doubt the place is finished...

Morrisons rolls out leadership school to level up staff



Morrisons has unveiled a leadership programme for staff in a bid to provide them with skills to advance their careers.

The Sir Ken Morrison Leadership School, named after the supermarket’s former chairman, has been designed to offer workers insight from mentors, including current Morrisons chair Sir Terry Leahy, Retail Week reported.

The grocer said the initiative, which was established by CEO Rami Baitiéh, had been set up to reflect the “innovative and hard-working spirit” held by Sir Ken, as well as that it sought out in its staff.

Leadership and technical training is included in the school, while partakers are also required to sit an exam and carry out a business-relevant project.

Morrisons will also work with graduates of the programme, with the aim of promoting them to their next step within six months.

Each cohort of participants will consist of roughly 70 people, with the school set to run three times per year.

Speaking to investors during a recent call, Baitiéh, who stepped up to the plate in November, said: “Our leadership school, an important investment in our future, is now under way and we have selected our first cohort.

“Each cohort has a mentor, and I was so pleased that our chairman agreed to be the very first mentor.”

He added: “Having Sir Terry Leahy as your mentor at leadership school is a bit like having Roger Federer as your tennis coach – amazing.”

[dutchman]

Morrisons raises freezer temperatures to cut energy costs and carbon emmisions



Morrisons is experimenting with raising its freezer temperatures by 3°C, becoming the first UK supermarket to break from a long-standing industry norm in a bid to reduce energy consumption and costs.

The supermarket retailer is adjusting the temperature in freezers at 10 of its stores, increasing it from the standard -18°C to -15°C. This industry standard has been in place for nearly a century.

The trial stores are spread across the UK, from Scotland to the south of England, allowing the grocer to assess the impact in different climates and supply conditions before a potential nationwide implementation.

The initiative has gained support from Birds Eye, the UK’s largest frozen food brand, as well as other members of the Move to Minus 15°C Coalition, which includes logistics companies DP World and Blue Water, and bacon producer Danish Crown.

A report from the Cop28 climate conference, authored by academics at the University of Birmingham and Heriot-Watt University, predicted that raising freezer temperatures by just 3°C across global supply chains could save 8.6% of the energy used in the UK and cut carbon emissions equivalent to removing 3.8 million cars from the road.

An 18-month study by Nomad Foods, the owner of Birds Eye, found that increasing freezer temperatures from -18°C to -15°C can reduce energy consumption by 10% to 11%, without affecting the safety, texture, taste, or nutritional value of food.

Morrisons, which has been struggling to compete in the grocery market since a debt-fuelled takeover back in 2021, said the cost savings could help it keep down prices for shoppers and contribute to its ambition to achieve net zero carbon emissions from its own operations by 2035.

Morrisons corporate services director Ruth McDonald said: “The standard temperature for the storage and transport of frozen food today looks like it is simply a convention from nearly 100 years ago.

“We now have vastly better freezers and modern technology and monitoring that gives us a precise picture of frozen food temperatures throughout the supply chain.”

[dutchman]

Meanwhile... In the cooked-meats section of Morrisons:

[dutchman]

Morrisons slashes night shifts in race to beat rivals



Morrisons is scaling back night shifts for its workers as bosses battle to turn around the grocer’s fortunes and win back market share.

The Bradford-headquartered supermarket chain is reducing night shifts offered to workers and moving largely to a combination of twilight and early shifts in an attempt to make its business more efficient.

Executives at the company insisted the change was not about saving money, claiming instead that the new times allowed for a better handover between shifts that improved productivity and led to fewer mistakes.

However, the scaling down of night work has angered some workers who will miss out on the higher wages previously paid to those who work at night. Night staff at Morrisons are paid an extra £2.35 per hour.

Employees moving from night shifts to twilight shifts will still receive night pay for several months, followed by a “half night pay premium” for a further two months. Around 100 stores have made the change so far.

Some workers have also voiced worries online about the effect on their work-life balance and alleged that it has not led to improvements in the availability of products in store as hoped.

[dutchman]

Executives at the company insisted the change was not about saving money

Yeah, right!

No one can get served in the evenings as it is.

[dutchman]

Half the self-service checkouts at Morrisons were closed last night so there were long queues for both them and the one remaining manned checkout.

I can't help noticing it's the same checkout supervisor on duty when most of these problems occur.

[dutchman]

Aldi shoppers trade up to Wagyu steak and brioche buns



The boss of Aldi UK says shoppers are treating themselves to more expensive products as cost of living pressures start to ease.

Customers are said to be "trading up" to premium own-label products including Wagyu steak, premium cheese, ready meals, and brioche buns.

It is a shift in behaviour from 2021, when soaring food prices saw a boom in cheaper supermarket own-label products as shoppers cut back and bought fewer brands to save money.

On Monday, Aldi revealed a 16% increase in sales in 2023 and bumper profits, though the discounter has recently lost ground as its competitors fight back.

The supermarket announced it would open 23 new stores in the next 16 weeks as part of an £800m investment plan.

Aldi's premium own-label ranges is growing ahead of other products, which is a similar picture for the wider grocery market as well.

Premium own-label volumes were up by nearly 16% year-on-year, according to the latest monthly data from the retail research firm Kantar. That compares with a drop of 10% for "value" own-label items.

Some of that increase may be down to consumers, many of who are still feeling pressure on budgets, choosing to eat in at home instead of dining out, as well as opting less often for bigger brands.

"It's still tough out there for millions of families but inflationary pressures are easing for some," said Aldi UK chief executive Giles Hurley.

"For others, it'll be a decision not to use hospitality but to celebrate at home instead."

With celebrating at home in mind, Aldi's specially selected range will make up more than 50% of its overall Christmas offering for the first time.