Morrisons axes convenience buying team in latest cost-cutting move

Morrisons
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Morrisons is cutting its convenience buying team as part of a wider cost-saving drive, with supermarket buyers set to absorb the responsibilities as the retailer moves to simplify its commercial structure.

According to industry publication Better Retailing, members of Morrisons’ convenience commercial teams were called into meetings on the morning of 4 March where they were informed their roles were no longer required, triggering a mandatory consultation process.

Sources said the teams were “summoned” to calls outlining the proposed changes, which form part of a broader effort to integrate Morrisons’ supermarket and convenience operations.

Better Retailing also reported that members of Morrisons’ wholesale commercial team were invited to calls on the same morning, although the outcome for those roles remains unclear.

The move is expected to result in redundancies within Morrisons’ buying operations, as the supermarket chain looks to consolidate responsibilities within a single commercial team.

Buying roles also at risk

Further changes are believed to be taking place within Morrisons’ supermarket buying teams, particularly across general merchandise roles.

As part of the restructuring, the retailer is relocating parts of its buying operation from its Bradford headquarters to a new site in Warrington.

One industry source suggested the move could also be strategically motivated by Morrisons’ ambition to strengthen its general merchandise proposition by attracting talent from nearby discount retailers.

“They want to learn from the success of Home Bargains and B&M,” the source told Better Retailing, suggesting the Warrington location could make it easier to recruit buyers from the two discount chains, whose head offices are based nearby.

Morrisons: ‘No direct impact on Daily stores’

A Morrisons spokesperson said the changes are designed to create a more integrated trading structure across its supermarket and company-owned convenience operations.

“To enable us to deliver a truly multi-channel shopping experience for Morrisons customers, we are proposing to integrate the operation of our supermarkets and company owned convenience stores and support office functions into a single team structure,” the spokesperson said.

“The plans will allow us to leverage the existing skills and expertise we have in the business, remove duplication, simplify our store operations and capture efficiencies.”

The supermarket chain stressed that the changes will not directly affect its Morrisons Daily convenience store estate.

“There will be no direct impact on Morrisons Daily stores,” the spokesperson added.

“The proposal will also enhance our ability to deliver a multi-channel approach to our trading business, leveraging opportunities with suppliers to improve our customer offer across both our supermarket and convenience formats.”

However, Morrisons confirmed that some roles are now at risk as part of the restructuring.

“Unfortunately, the proposals will result in a number of roles being put at risk of redundancy as we integrate tasks into a single team and we will now commence a consultation process with impacted colleagues,” the spokesperson said.

“We understand this will be difficult news for them and will be offering them our full support, including helping them to find alternative roles elsewhere in the business wherever we can.”

Despite the changes, Morrisons insisted its long-term plans for the convenience sector remain unchanged.

“There is no change to our convenience growth strategy and we continue to see the opportunity for significant expansion in the years ahead.”

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Morrisons axes convenience buying team in latest cost-cutting move

Morrisons

Morrisons is cutting its convenience buying team as part of a wider cost-saving drive, with supermarket buyers set to absorb the responsibilities as the retailer moves to simplify its commercial structure.

According to industry publication Better Retailing, members of Morrisons’ convenience commercial teams were called into meetings on the morning of 4 March where they were informed their roles were no longer required, triggering a mandatory consultation process.

Sources said the teams were “summoned” to calls outlining the proposed changes, which form part of a broader effort to integrate Morrisons’ supermarket and convenience operations.

Better Retailing also reported that members of Morrisons’ wholesale commercial team were invited to calls on the same morning, although the outcome for those roles remains unclear.

The move is expected to result in redundancies within Morrisons’ buying operations, as the supermarket chain looks to consolidate responsibilities within a single commercial team.

Buying roles also at risk

Further changes are believed to be taking place within Morrisons’ supermarket buying teams, particularly across general merchandise roles.

As part of the restructuring, the retailer is relocating parts of its buying operation from its Bradford headquarters to a new site in Warrington.

One industry source suggested the move could also be strategically motivated by Morrisons’ ambition to strengthen its general merchandise proposition by attracting talent from nearby discount retailers.

“They want to learn from the success of Home Bargains and B&M,” the source told Better Retailing, suggesting the Warrington location could make it easier to recruit buyers from the two discount chains, whose head offices are based nearby.

Morrisons: ‘No direct impact on Daily stores’

A Morrisons spokesperson said the changes are designed to create a more integrated trading structure across its supermarket and company-owned convenience operations.

“To enable us to deliver a truly multi-channel shopping experience for Morrisons customers, we are proposing to integrate the operation of our supermarkets and company owned convenience stores and support office functions into a single team structure,” the spokesperson said.

“The plans will allow us to leverage the existing skills and expertise we have in the business, remove duplication, simplify our store operations and capture efficiencies.”

The supermarket chain stressed that the changes will not directly affect its Morrisons Daily convenience store estate.

“There will be no direct impact on Morrisons Daily stores,” the spokesperson added.

“The proposal will also enhance our ability to deliver a multi-channel approach to our trading business, leveraging opportunities with suppliers to improve our customer offer across both our supermarket and convenience formats.”

However, Morrisons confirmed that some roles are now at risk as part of the restructuring.

“Unfortunately, the proposals will result in a number of roles being put at risk of redundancy as we integrate tasks into a single team and we will now commence a consultation process with impacted colleagues,” the spokesperson said.

“We understand this will be difficult news for them and will be offering them our full support, including helping them to find alternative roles elsewhere in the business wherever we can.”

Despite the changes, Morrisons insisted its long-term plans for the convenience sector remain unchanged.

“There is no change to our convenience growth strategy and we continue to see the opportunity for significant expansion in the years ahead.”

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