Business benefits of Morrisons' manufacturing splits opinion - CILT(UK)
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Business benefits of Morrisons' manufacturing splits opinion

14 March 2016/Categories: Industry News


David Potts, chief executive officer of Morrisons, said that the company has a role a food maker and shopkeeper in its full-year results.

Mr Potts has outlined a strategic plan for Morrisons, in which manufacturing will have a role in rebuilding and growing the company, reports Food Manufacture.

However, his plan has come under scrutiny from commentators in the industry, who aren't certain of the company's potential abilities.

Morrisons has said: "We will turnaround Morrisons and become a broader, stronger business. That opportunity is enabled by our unique capabilities as food makers and shopkeepers, and our well-invested manufacturing operations."

Duygu Hardman, Verdict Retail analyst, believes that the supermarket's manufacturing capability is a strength, but also feels that "Morrisons hasn't done a very good job in communicating the strength of its vertical integration to a wider audience".

She does, however, believe that its manufacturing potential sets it apart from the big four supermarkets. Similarly, its supply chain is often better than those of its competitors, using the horsemeat scandal as an example, as Morrisons was relatively unscathed during this time.

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