Kiddicare
In 2011, Morrisons bought children's retailer
Kiddicare for £70m to give it the knowledge to sell clothing and homewares online.
[67] In 2012 10 former
Best Buy stores from the
Carphone Warehouse were acquired to expand Kiddicare into retail stores.
[68]
In March 2014 Morrisons CEO Dalton Phillips announced the company's
intention of selling Kiddicare. The company was sold to the Endless
private equity firm for £2 million in July 2014, only to be sold on to
Worldstores two months later (in September 2014) for an undisclosed sum.
[69]
FreshDirect
Morrisons purchased a 10% stake in New York-based online grocer
FreshDirect
for £31 million in 2011. After having sent a team to New York to learn
from the business ahead of the predicted launch in 2013, Morrisons began
a home delivery initiative in January 2014. In March 2014 Morrisons CEO
Dalton Phillips announced the company had agreed to sell its stake in
FreshDirect
due to financial difficulties the company was facing and, as it had set
up its own online shopping site, it no longer needed FreshDirect.
[70] The sale was completed in August 2016 for £45 million.
[71]
Convenience stores
The company operated a number of smaller stores called "Morrisons M Local" in major places such as
Birmingham,
Manchester Cardiff and
Bristol. These stores had a similar format to small
Tesco Express and
Sainsbury's Local
stores, but included a wider range of ready-to-eat hot food such as
pastries, coffee, rotisserie, porridge and also a salad bar, items are
stocked from nearby superstores and shoppers can also order foods in
including fresh meat and fish.
[72]
A distribution centre in
Feltham, West London was acquired to provide a distribution network to the stores in
London and
the South East where there are few superstores.
[73]
Around 70 stores were opened by the end of 2013, which was boosted by the purchase of 7
Jessops and 49
Blockbuster stores from administrators.
[74] On 26 February 2013, a further 6
HMV stores were acquired from administrators.
[75] The M Local chain was sold to a private equity group in 2015 and rebranded
My Local, but this went into administration itself less than a year later.
[76]
Marketing and branding
Logos and slogans
The Morrisons logo, 1980-March 2007
The Morrisons logo, April 2007 until October 2015
On 15 March 2007, Morrisons announced that it would ditch its
existing branding and strapline in favour of a more modern brand image.
Their lower price option brand,
Bettabuy, was also changed to a more modern brand called the
Morrisons Value range.
[77]
The change saw the replacement of the old yellow and black logo, with the
"More reasons to shop at Morrisons" strap line replaced with
"Fresh choice for you". In 2010 this was replaced by
"Eat Fresh. Pay less." This was later changed again in 2013 to
"More of what matters". It also involved the replacement of external signage, with the previous
Morrisons
signs being retained alongside the new logo, as well as changes to
product packaging, point of sale, advertising, staff uniforms (replacing
the old blue ties and bows with green ones) and distribution vehicles.
The rationale behind the decision was the need for Morrisons to attract a
wider national customer base, capitalising on its expanded geographical
spread following the acquisition of Safeway.
[78]
However, in 2016 Morrisons released a new logo to try and draw on the
brand's heritage, with the new logo being installed an all store signs
as well as new uniforms and new in-store looks.
[79]
Loyalty card
The
Morrisons Match & More card price matched the chain's customers'
comparable grocery shopping in store and online with Aldi, Lidl, Tesco,
Sainsbury’s and Asda. If a customer spent £15 or more and could have
paid less for their comparable groceries, Morrisons automatically gave
them the difference in points on their card at the checkout. For 1p
difference in the cost of shopping, customers got 10 Match points – and
for £1 difference they got 1,000 points. The difference was calculated
at the checkout on national brands and comparable own label products and
fresh food, even those that are on promotion elsewhere.
[80]
In 2016 the Match & More loyalty cards were rebranded as the "More"
loyalty card and all customers were issued a new card in line with the
rebranding.
[81]