This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
RETAIL NEWS
“standfirst”>Major overhaul planned for the Morrisons brand, supermarket chain Morrisons is planning a major overhaul of its retail branding… Wal-Mart ready for Tesco arrival, Wal-Mart is preparing for battle as its rival Tesco finalises plans to enter the US market…
Major overhaul planned for the Morrisons brand
supermarket chain Morrisons is planning a major overhaul of its retail branding. The company issued a statement to investors stating that the company will be repositioned, focusing on its credentials as a food retailer. The move marks the first major step in the company’s “optimisation plan”, an ongoing project in which the organisation is investing approximately £450 million. The new corporate slogan will be “The food specialist for everyone”, replacing the previous strapline, “More reasons to shop at…”. In addition, the company plans to ditch its traditional yellow and black logo and identity; as the drinks business went to press, details of the new branding had not yet been revealed.It has taken some time to fully integrate the former Safeway portfolio into the business. However, in an address to shareholders last month, chairman Sir Ken Morrison said that the company had achieved this objective. Pre-tax profits for 2006 were up to £369m, compared to £62m the previous year. The company has been buoyed by the arrival of new CEO, Marc Bolland, who joined the company in September from Heineken. Indicating why the supermarket is eager to emphasise its focus on food he said: “An encouraging feature of the year was the increasing focus by consumers, the media and the industry on health, quality, freshness and provenance of food.”
It is also anticipated that the company’s change in direction will involve opening smaller convenience stores in urban centres. Bolland has suggested that the company needs to be more flexible in terms of store sizes and formats to contend with market leader Tesco.
Wal-Mart ready for Tesco arrival
wal-mart is preparing for battle as its rival Tesco finalises plans to enter the US market. According to a report in The Sunday Times, the American company has hired an ex-senior executive from the UK giant in a concerted effort to “torpedo” Tesco’s impending debut in the US. According to the report, Wal-Mart (which owns the ASDA chain in the UK) has hired former Tesco international managing director, David Wild. It seems safe to assume Wild will use his expertise to prepare his new employers for the arrival of his previous paymasters.Tesco will open its first US doors on the West Coast later this year under the name “Fresh & Easy”. All its convenience stores will operate under this name, and have a different corporate identity to Tesco’s ubiquitous red and white branding in the UK and other international markets. Chief executive Sir Terry Leahy says: “This is a tremendously exciting move for Tesco, which will add a new leg to our international expansion.
“The United States is the largest economy in the world with strong forecast growth and a sophisticated retail market. It is a market we have researched extensively for many years and over the last year we have committed serious resources to developing a format that we believe will be really popular with American consumers.”
ASDA criticised in portman ruling
asda has been criticised by industry watchdog The Portman Group for a breach of its code of practice relating to packaging and promotion. The group ruled that a gift pack that included a small bottle of liqueur and a cuddly toy would appeal to children.Portman chief executive David Poley said: “These companies [ASDA and manufacturer The Gift Business] have overstepped the mark with this irresponsible marketing. The Portman Group has repeatedly warned the industry about the risks of selling alcohol with cuddly toys.” He advised companies to take advantage of Portman’s pre-sale advice, and pointed out that the Group has produced specific guidance on gift packs and alcohol to help producers ensure they do not adopt irresponsible practices.
ASDA was similarly censured last June for the Bubbly and Bear gift pack.
Course addresses underage sales
Education development International (EDI) has developed a new training course to educate sales staff about selling to underage consumers. The qualification – the only such course to have been given government accreditation – is targeted at on- and off-trade premises that may have to deal with underage shoppers.Following the 2003 Licensing Act licensees are subject to severe penalties if they are caught selling alcohol (or other age-controlled products) to under-18s. The current media storm about teenage anti-social behaviour is making Trading Standards officials increasingly likely to target retailers.The one-day underage sales prevention course was developed by EDI in conjunction with the Confederation of Professional Licensees. EDI’s Gareth Phillips explains: “It’s in a business’ best interests to ensure employees are trained in the importance of underage sales prevention, so they can be more vigilant in ensuring laws are not broken and the company’s reputation and future is not put at risk.” For details of the course call EDI on
08707 202 909.
© db April 2007