Morrisons CEO Rami Baitiéh has revealed three key changes for the supermarket's future after achieving £940 million in cost savings over three years, though the chain still plans to close 100 stores.
Cost Savings and Technology Investment
In a LinkedIn post last week, Baitiéh attributed the savings to a technology-driven strategy combining bottom-up investment with top-down education. He wrote: "By empowering our teams with the right directions and knowledge while funding practical, grassroots ideas, we've unlocked massive value." The savings were achieved without compromising customer experience, he said.
The cost-cutting plan included job cuts across all functions at Morrisons' head office. Baitiéh stated that these savings are being reinvested into the company's future.
Three Keys for Brick-and-Mortar Retail
Baitiéh identified three priorities to help physical retailers "stay ahead of the curve": personalised retail media, accurate stock tracking, and competitive pricing. He said his "goal is to make Morrisons stores as easy to navigate and clear to understand as our digital website."
Store Closures Planned
Despite the savings, Morrisons is proceeding with the closure of 100 stores, primarily loss-making convenience outlets. In May, the retailer announced that Morrisons Daily sites—acquired through the McColls takeover—would be affected. Seven specific closures have been announced so far.
The retailer blamed rising costs from government measures, including increases to the National Living Wage and employer National Insurance contributions. Hundreds of positions are at risk, with consultations ongoing.
