Morrisons Bounces Back From Cyber-Attack With Strong Sales Growth And Fresh Focus On Value

Morrisons chief executive Rami Baitiéh has praised the retailer’s resilience following a major cyber-attack that disrupted its operations late last year.

The Bradford-based supermarket was hit in November when technology provider Blue Yonder fell victim to a ransomware incident. The breach significantly impacted Morrisons’ ability to manage stock and fulfil orders, prompting the rapid development of a new warehouse management system.

Despite the upheaval, Morrisons has reported a marked recovery in trading. Like-for-like sales rose by 3.9 per cent in the 13 weeks ending 27 April, a notable improvement on the previous quarter, when comparable growth had slowed to just 2.1 per cent in the aftermath of the attack. Total sales also increased by 4.2 per cent to £3.9 billion, while first-half underlying earnings before interest, tax, depreciation and amortisation rose by 7.2 per cent to £344 million.

Baitiéh, who joined Morrisons from Carrefour last year, commented: “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds.

“Throughout the first half, we've worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.”

Morrisons, owned by US private equity firm Clayton, Dubilier & Rice, has continued to expand its convenience footprint, opening 42 new franchise locations during the period. The total number of Morrisons Daily stores has now surpassed 1,700, underscoring the grocer’s commitment to the convenience market—a sector it initially exited in 2015 before returning with renewed focus.

The group has also introduced several in-store initiatives, including trials of a revamped Market Street fresh food counter—designed to mimic the look and feel of a traditional farm shop—and a new World Foods offering aimed at broadening customer appeal.

However, Morrisons’ turnaround has come alongside tough cost-cutting measures. Originally announced two years ago to help fund price reductions, the strategy has seen the supermarket confirm plans to close over 50 cafés, four pharmacies, numerous convenience stores and florists, and dozens of meat, fish and hot food counters. Around 365 jobs are at risk, with the majority of redundancies expected to affect staff in the convenience division.

According to the latest figures from Kantar, Morrisons currently holds an 8.4 per cent share of the UK grocery market.

Despite ongoing pressures, the retailer’s recent performance and continued investment in price, format innovation, and local convenience suggest a renewed confidence in its future strategy.

Source: This is Money