- Northern-based supermarket to expand in the prosperous Home Counties
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Morrisons plans to take on its south of England rivals by wooing shoppers with upmarket ingredients and stylish stores.
The Northern-based supermarket firm has announced a drive to expand in the prosperous Home Counties.
Its new shops will stock more than 500 types of fresh produce and introduce more sophisticated items stocked by rivals Sainsbury and Waitrose.
Expansion drive: Supermarket Morrisons is planning to take on its rivals in the south of England
Stores will sell the fashionable samphire sea vegetable, five types of chilli, purple potatoes and bottles of fine wine costing upwards of 20.
It has also started displaying its vegetables on beds of ice and spraying them with mists of water, which it says adds a touch of theatre.
The firm, which is Britain’s fourth biggest supermarket chain, has its headquarters in Bradford.
Trend: Morrisons CEO Dalton Philips said consumer confidence has fallen dramatically over the past few months
It claims to offer cheaper prices because it owns farms and produces fresh fruit and veg itself, and has traditionally been a big presence closer to its northern roots.
Currently Morrisons has only 31 shops within the M25 but it said that 60 per cent of all its new stores will be in the south.
It has outlets under development at Weybridge and Croydon in Surrey, and Harrow and Colindale in North London.
Chief executive Dalton Philips said consumer confidence dramatically fell over the past few months.
‘We are seeing shoppers skipping meals so they can save cash to feed their children,’ he said. ‘They are hiding treats around the house to ration them through the week, dipping into savings and recycling their clothes.
‘Year on year consumer confidence is worse and disposable income is down – it’s tough out there.’
The business, which claims to offer cheaper prices because it owns farms and produces fresh produce itself, has traditionally been a big player closer to its northern roots.
But it now feels the time is right to make its move on the more prosperous south as it fine tunes a new store format it thinks will appeal to a broader cross-section of shoppers.
Currently only 15pc of its new stores are in the south and by 2013/14 that will increase to two thirds of the retailer’s 2.5m sq. ft. network of new space.
On the menu: The supermarket plans to introduce trendy items like samphire and purple potatoes
It now has stores under development at Weybridge and Croydon in Surrey and Harrow and Colindale in north London.
Philips added: ‘The next three years will see a step-change in Morrisons southern presence bringing another 2m households within a 15 minute drive of our stores.
‘We are going to be food-focused, not generalists. We believe that UK grocery has got very functional.
‘Our new format allows us to see how we perform with different demographics, you always carry on tweaking the format but we have an offer that really travels down south.’
Source: www.dailymail.co.uk
FTSE falls nearly 2% on Spanish fears but brokers tip out-of-favour Morrisons and Home Retail - The Guardian
As leading shares fell sharply on renewed fears for the eurozone amid rising Spanish and Italian bond yields, a couple of out of favour retailers managed to escape the worst of the downturn.
Morrisons, under pressure recently on concerns about its falling market share, ended 1.7p higher at 275p after positive comments from Galvan Research. Analyst Andrew Gibson said:
Despite difficult conditions, Morrison's May update was in line with its expectations, and this coupled with the ongoing share buyback and the woes of sector leader Tesco suggests that the shares represent a buying opportunity just off the current year lows.
Meanwhile Home Retail, owner of Argos and Homebase, fell 0.8p to 76.6p , outperforming the market following an overweight recommendation from JP Morgan:
It's been a difficult three months. Expectations are low generally and have worsened in the recent poor weather. However, it is still all to play for at Christmas for Argos where capacity exits should benefit and Homebase could have a decent Jubilee-boosted second quarter. The new Argos boss is due to report his views in October. All options are on the table. The market, we think, will be hoping for an accelerated store closure programme, even if it does cost £125m. The risk is he does nothing. The shares look inexpensive on 2014 PE of 7.5 times, in our view, but the sensitivity of the estimates is high, as is the risk/reward.
Overall, after four days of gains, the FTSE 100 finished 93.86 lower at 5297.28. Growing fears about Spain's banks and pressure on Italy were not eased by the European Commission's proposals for closer banking ties, despite an initial burst of optimism. The euro hit new 22 month lows, and European markets also plunged into the red. Disappointing US pending house sales did not help sentiment, ahead of Friday's non-farm payroll numbers. Angus Campbell, head of market analysis at Capital Spreads, said:
The market was hit from all angles today as the latest poll from Greece gave the anti-bailout party the biggest share of the vote, the Italian bond auction was a disappointment and EU economic and industrial confidence data fell sharply in May, much more than expected. All this news flow gave bears the perfect opportunity to push the market lower in a perfect storm of panic which is fanning the problems by causing Spain's borrowing costs to go higher.
Mining groups and banks were - as usual - among the main fallers as investors shied away from risk once more. Eurasian Natural Resources Corporation closed 30.6p lower at 434.6p and Vedanta Resources lost 53.5p to 940.5p. Among the financials, Barclays fell 1.55p to 179.45p and Royal Bank of Scotland ended 0.62p lower at 20p as it fending off questions about executive pay at its annual meeting.
Elsewhere BG agreed to sell its 40% stake in two gas-fired power stations in the Philippines for $360m, freeing up cash to invest elsewhere. Its shares lost 59.5p to £12.24 in the general gloom, but Andrew Whittock at Liberum Capital issued a buy note:
We had valued the interest at $300m - so it confirms our 1570p BG asset valuation but no significant change to forecasts.
A number of companies saw their shares go ex-dividend, including Amec, 40p lower at 975p, and Marks & Spencer, down 12.8p at 332.2p.
Utility companies provided some comfort. Severn Trent rose 42p to £17.06 after better than expected full year profits and news of a proposed £150m return to shareholders.
Chip designer Arm added 1p to 508.5p after Dell said it would offer customers a choice between the company's products and those of rival Intel. Positive comments from Apple - an Arm customer - also helped, as did analysts at UBS suggesting potential cash payouts to investors.
Among the mid-caps Essar Energy rose 25.5p to 141.8p on reports the Indian government had approved its development plans for a coal block in Madhya Pradesh state. The company said it had yet to received any official notification.
Industrial group Cape, which shocked investors a week ago with a profit warning after running into trouble with its projects in Algeria, climbed 7.5p to 238p after appointing a new chief executive. Joe Oatley, former chief executive of engineering group Hamworthy, will join in June.
Centamin, the Egypt-focused mining group, added 2.5p to 64.25p after a new five year plan for its Sukari gold project. It expects to double last year's production by 2014
Finally Booker jumped 7.9p to 87p after the cash and carry group paid £139.7m for the UK businesses of Germany's Metro, which trades under the Makro name. The deal involves Booker paying £15.8m in cash and the rest in shares, which would give Metro a 10% stake in the company.
Source: www.guardian.co.uk
Tesco Express on track for Burghfield Common - Reading Evening Post
Tesco Express on track for Burghfield Common
May 30, 2012
An old pub could soon be turned into a new Tesco store in Burghfield Common following a planning appeal.
Delicia Consolidated Limited was turned down in its application by West Berkshire Council last June when it applied to convert the Rising Sun in Reading Road into a shop/cafe/restaurant/pub or bar.
Local people and shopkeepers objected to the change of use and expressed concern when it became clear that a Tesco Express was one of the possible uses for the site.
But now planning permission has been granted on appeal.
Spokesman for Tesco Simon Petar said: “We have not signed a lease for the property. Should this change we will write to local residents about proposals for a Tesco Express.
“Our Express convenience stores are extremely popular with customers and play an important role in the local community.”
In January Tesco admitted it was in discussions over the lease, but would not sign it until certain conditions were met – including gaining planning permission.
Source: www.getreading.co.uk
Brown and Joyce lead Sussex recovery - ECB
Ben Brown and Ed Joyce led a spirited fightback after Middlesex had threatened to bowl Sussex out cheaply at Lord's in LV= County Championship Division One.
Tim Murtagh took three early wickets with the new ball after Sussex skipper Michael Yardy had won the toss and elected to bat, finishing with figures of 4-41.
Steven Finn also picked up two wickets as Sussex slumped to 66 for five before Joyce and Brown began the recovery. Finn, by the close, had 3-65.
Joyce made 77 in a partnership of 81 with Brown, who went on to add 63 with Naveed Arif Gondal before falling for 70 as Sussex reached 242 for eight by the end of play. Gondal made 38.
Murtagh put Sussex on the back foot, producing an impressive opening spell.
Tim Murtagh claims 4-41 as Middlesex reduce Sussex to 242 for eight on day one of their LV= County Championship clash at Lord's
Chris Nash went for a duck off the second ball of the match when he edged a delivery that bounced and left him to wicketkeeper John Simpson.
Murtagh then removed Joe Gatting and Murray Goodwin in the space of four balls to leave Sussex rocking at 16 for three.
Gatting got an inside edge on to his pad with the ball carrying to Ollie Rayner at second slip while Goodwin's poor run continued as he nicked his fourth ball to Dawid Malan at second slip for a duck.
Yardy then chased a wide one from Gareth Berg and was caught by Finn for eight, meaning four of Sussex's top five had failed to get into double figures.
The in-form Luke Wright struck three quick boundaries before paying for a lack of footwork as he was caught behind off Finn for 14.
Joyce had one reprieve when former Sussex team-mate Rayner was unable to hold on to a sharp chance at second slip when on 33.
The Ireland international piled on the runs with Brown before gloving a catch down the leg side to Simpson off Finn. His innings lasted 174 balls and included 10 fours.
Brown continued to frustrate the home bowlers with Gondal, bringing up his first half-century of the season off 127 balls with five fours.
Middlesex ended the day well as the arrival of the new ball saw Finn remove Brown and Gondal fall to Murtagh after a short break for rain.
Source: www.ecb.co.uk
Morrisons sees no let-up in consumer squeeze - Reuters
* Says shoppers using savings to pay bills
* Sees no respite for consumer for a year
* Focus of space growth will be south of England
* Still mulling entry into online food
* Shares up 0.6 percent
By James Davey
TUNBRIDGE WELLS, England, May 30 (Reuters) - Britain's fourth biggest grocer Wm Morrison Supermarkets said consumers are finding the economic environment so severe they are having to use savings to pay monthly bills, are skipping meals and are hiding treats from their children.
"Overall it's very very tough and I don't see any respite for a year or so," Chief Executive Dalton Philips told reporters on Wednesday.
His gloomy prognosis is bad news for a UK economy which tipped back into recession in the first quarter and is heavily reliant on consumers to drive growth.
Shoppers are being squeezed by rising prices, meagre wage growth and government austerity measures that show no sign of abating.
"The stories we get from our customers now - (they are) still buying biscuits but hiding them to a greater extent, recycling of clothes, passing clothes down, one in five mothers skipping meals," said Philips during a media trip to Morrisons's new store in Tunbridge Wells, 50 miles (80 km) south east of London.
"People are on really tight budgets, 43 percent of our customers are now dipping into their savings to make their monthly bills," he said.
Earlier this month Morrisons posted a 1 percent fall in underlying first quarter sales.
The CEO reiterated that the retailer would sit back from a wave of promotional vouchers sweeping the industry.
"We're very focused on providing great pricing but we're not going to do crazy stuff," he said.
Philips did, however, say he expected consumers to spend more this summer on the back of celebrations to mark the Queen Elizabeth's Diamond Jubilee, the Euro soccer championships and the London Olympics.
And he noted that trading last weekend, when the nation was basked in sunshine, was "massive".
PUSHING SOUTH
Morrisons, based in Bradford in northern England, is targeting opening 2.5 million square feet of new space over the three years to 2013/14. It opened a net 643,000 in 2011/12.
The Tunbridge Wells store, which showcases Morrisons's "Fresh Format", forms part of its strategy to accelerate growth in the south of England where it it under represented compared with rivals, such as industry leader Tesco and No. 3 player J Sainsbury.
The next three years will see a step-change in Morrisons' southern presence bringing another 2 million UK households within a 15 minute drive of one of its stores.
Property Director Terry Hartwell said 60 percent of the firm's new space in 2013/14 will be in the south.
Philips said a decision on whether Morrisons would enter a British online grocery market worth 6 billion pounds ($9.3 billion) a year will not be made until next year.
"If we do it we'll do it at the end of next year and we'll only do it if we can do it profitably," he said.
"I feel encouraged but it's still too early to be definite about it."
Shares in Morrisons closed up 0.6 percent at 275 pence, valuing the business at 6.8 billion pounds.
Source: www.reuters.com
Store shelves bid to bag extended hours - This is Sentinel
A SUPERMARKET which planned to open for an extra five hours has made a last-minute U-turn.
Morrisons, in Knutton, wanted to trade from 6am until midnight to offer customers "greater flexibility".
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U-TURN: Morrisons.
But after objections from residents, the company decided to ditch its bid just hours before the proposal went before Newcastle Borough Council.
The chain will now keep the store's current opening times of 8am to 9pm.
But it has not ruled out another application for longer hours at a later date.
Peter Cotton, aged 75, of Malham Road, Knutton, said: "It is the right decision not to go ahead.
"The site is in close proximity to an old people's complex and they don't want all that extra noise up until midnight."
The plans would have allowed the store, in Lower Milehouse Lane, to sell alcohol during the revised times.
Mr Cotton added: "It would attract more traffic on our roads and affect those living close by."
The plans would also have meant the store had the longest opening hours out of all the Morrisons in the area.
The supermarket in Newcastle town centre opens from 8am until 10pm, while Morrisons at Festival Park operates from 7am until 10pm.
Currently all three stores open from 10am until 4pm on Sundays.
Originally the supermarket had claimed the extended hours would provide more choice for shoppers.
At the time, a spokesman said: "We have made an application to extend our opening hours in order to give customers greater flexibility when they do their weekly shop."
However, there were objections from residents living near the shop.
Then, before a decision could be taken by a Newcastle Borough Council licensing subcommittee, the company withdrew its application.
Don Procter, aged 75, from Lower Milehouse Lane, said: "People feel very strongly about this and I am pleased to hear it is not going ahead.
"I was very unhappy about the proposed opening hours.
"Perhaps they have bowed to pressure from locals and that is the last we will hear of it."
Mr Cotton, a retired engineer said: "It is a happy thing that they have withdrawn.
"If people are so desperate to make purchases at this time of night they can travel out of town.
"But this is a residential area and the people should be the first priority."
A Morrisons spokesman said: "We always want to make sure store hours are right so we can deliver great service.
"We review this on a regular basis and may resubmit another application at a later date."
Source: www.thisisstaffordshire.co.uk
And what is wrong with us Northerners? I am fed up with us being treated as cloth-capped ferret fanciers who only eat fish and chips. Morrisons of all companies should have more loyalty and respect for its roots. It's bad enough that my taxes are being used for the London olympics, which none of us northeners will gain from. Now it appears that they think more sophisticated food tastes are exclusive to the 'Home Counties'.
- Colin , Coningsby, 31/5/2012 03:24
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