Optimisation Plan

Following the acquisition of Safeway, Morrisons encountered a number of difficulties. The company had issued five profits warnings since the acquisition, and it was felt that the original Morrisons northern format did not work as well in some of the former Safeway stores in the south. To reinvigorate its new national image, Morrisons appointed the Dutchman Marc Bolland (the Chief Operating Officer of Heineken), as its new Chief Executive.^[32]

Retirement of Sir Ken Morrison

On 13 March 2008 Sir Ken Morrison retired as Chairman after 55 years at the company and was made Honorary President.^[33]

Purchase of Co-op and Somerfield stores

When the Co-operative Group completed its takeover of the Somerfield supermarket chain in March 2009, it was required to sell a number of stores by the Competition Commission. Morrisons purchased 35 stores from the combined group, mostly trading under the Somerfield fascia.^[34] These new stores were the first of more than 100 identified by Morrisons for expansion into smaller supermarkets as it aims to have a store within 15 minutes of every UK home.^[35]

Multi-channel diversification

Morrisons supermarket, High Street, Saltney, Flintshire

Following Marc Bolland's departure to become the CEO of Marks & Spencer in December 2009, Dalton Philips was appointed in a surprise move as his replacement in January 2010.^[36]
In 2010, Morrisons signed a deal with budget retailer Peacocks, the first concession store opened as part of a refurbishment at the retailer's store in Idle, Bradford.^[37] The Peacocks section was rolled out into other stores before launching its own childrenswear brand 'Nutmeg' into 85 stores on 21 March 2013.^[38] Speculation is that Morrisons is investigating a launch into adult clothing during 2014.^[39]
The first Morrisons M local store opened in Ilkley, Yorkshire in 2011.^[40]
Throughout December 2012 the supermarket chain saw a 2.5% decline in sales. That led the chain to label its financial performance for the Christmas period 2012 as 'disappointing', although the supermarket it claimed it was on track to meet its targets.^[41]
In May 2013 Morrisons announced a partnership with Ocado to use its technology systems and distribution infrastructure to help launch its own online service.^[42]
Richard Pennycook, who had joined Morrisons in October 2005,^[43] was replaced as Chief Financial Officer at Morrisons in June 2013 by Trevor Strain, previously Finance Director Corporate.^[44]

Potential private equity takeover bid

In February 2014, it emerged that younger members of the founding Morrison family, who own 10% of the company and who are thought to include two of Honorary President Sir Ken Morrison's children, William Morrison Junior and Andrea Shelley, along with Sir Ken Morrison's niece and her husband, Susan and Nigel Pritchard, had approached a number of private equity firms about taking the company private. They were said to be extremely unhappy about the company's disastrous financial performance, and the corporate strategy being undertaken by Dalton Philips.^[45]

Public criticism by the Morrison family

Following a new three-year corporate strategy revealed in March 2014 aimed at recovering sales and market share, at Morrisons Annual General Meeting in June 2014, Morrisons former chairman Sir Ken Morrison blasted Dalton Philips and his new board of directors for destroying the company he inherited from his father; Morrison remarked on Philips's strategy to save the failing supermarket from the pressures of Aldi and other discounter stores, stating "When I left work and started working as a hobby, I chose to raise cattle. I have something like 1,000 bullocks and, having listened to your presentation, Dalton, you've got a lot more bullshit than me."^[46]
Morrison's comments were backed up by his nephew Chris Blundell, who controls most of the remaining family stake in the supermarket, who also told the board it needed rescuing, and welcomed the decision by chairman Sir Ian Gibson to leave the business next year (in June 2015) after months of pressure.^[47]

Restructuring plans

In June 2014, Morrisons announced that there are plans put in place to cut 2,600 jobs as a result of changes to its management structure.^[48] Morrisons stated that it had trialled the new structure and believed that better performance was achieved via these methods. However, these cuts would primarily affect department manager and supervisory positions. Morrisons would create 1,000 jobs in Morrisons M local convenience stores and 3,000 in new supermarkets. Following this, Morrisons sold its distribution centre in Kent to a real estate investment company for £97.8 million. In turn, the depot in Kemsley, will be immediately leased back to the supermarket chain on a 25-year agreement with a £5.4 million rental fee per annum.^[49]