Morrisons CEO Rami Baitiéh has announced that the supermarket chain has saved £940 million over the past three years through the strategic use of artificial intelligence (AI), with the savings being reinvested into the business. The update comes as the company faces the closure of 100 Morrisons Daily convenience stores, a decision attributed to rising costs from government policies.
AI-Driven Savings and Reinvestment
Baitiéh shared details of the supermarket's AI strategy at VivaTech Paris and The Good Consumer Forum in Vienna. He emphasized that Morrisons paired a bottom-up investment strategy with a top-down educational approach, empowering teams with direction and knowledge while funding practical, grassroots ideas. This approach, he said, unlocked massive value without compromising customer experience.
“While I can't share every detail, this specific tech-driven vision has materially contributed to the delivery of £940 million over the last three years, all without compromising our customer experience,” Baitiéh wrote. He confirmed that the savings are being reinvested into the future of the company.
Store Vision and Digital Integration
Baitiéh outlined his goal to make Morrisons stores as easy to navigate and clear as the company's digital website. He highlighted personalized retail media, accurate stock tracking, and competitive pricing as key success factors for bricks-and-mortar retailers. “Personalised retail media, accurate stock tracking, and competitive pricing are the ultimate keys to success for bricks and mortar retailers wanting to stay ahead of the curve in the coming years,” he said.
Store Closures and Financial Context
Morrisons is closing 100 branches in the coming months, primarily loss-making Morrisons Daily convenience stores that became part of the group through the acquisition of McColls. The company blamed cost increases from policies introduced by Chancellor Rachel Reeves, including rises in the national living wage and employer national insurance contributions. Morrisons stated that the “tough” decision would put more staff at risk of redundancy, but it would try to find roles for those affected.
There are approximately 1,700 Morrisons Daily convenience stores in the UK, according to the BBC. Earlier this month, Morrisons reported total sales growth of 1.7% to £4 billion over the 13 weeks to April 26, a slowdown from the 2.6% increase in the previous quarter. Like-for-like sales growth also decelerated to 2.2% from 2.8%.
