Morrisons targets ‘professional shoppers’ to help build profits

Morrisons says the targetting of what it calls “professional shoppers” has helped it to build full year profits.Morrisons targets 'professional shoppers' to help build profitsThe UK’s fourth largest supermarket chain reported a profit of £947 million in 2011, up 8.4% on the previous year.

Morrisons said it had noticed the rise of “professional shoppers”, who look hard for bargains and share information on social networks.

The opening of 34 stores also helped Morrisons to attract a record number of customers last year.

Morrisons’ chief executive Dalton Philips said the rise of the “professional shopper” had been a phenomenon “we’ve been seeing for the last six, eight months or so”.

“They are customers who are spending to a specific budget – they are spending more time cooking at home, so cooking from scratch. And they are shouting about the bargains that they see out there, going onto social media checking for them and communicating them,” he said.

Morrisons warned that it expected 2012 to be another tough year, with customers squeezed by high fuel costs and little growth in wages.

In a statement accompanying the annual results, the company’s chairman, Sir Ian Gibson, highlighted the impact of rising fuel prices.

“With unleaded prices at the pump up by 15.4p per litre and diesel increasing by 18.5p, motorists were paying an average of 15% more per litre at the pump than they did in the previous year in 2010,” he said.

Morrisons also said that basic food prices jumped last year. Beef prices rose 15% and wheat prices were up 32%. Excluding fuel, like-for-like sales – which strip out the impact of new store openings – were up 1.8% last year.

To help generate future growth Morrisons plans to open more convenience stores, saying that this part of the retail market is growing much faster than larger stores.

June 1, 2012  Tags: , , , , ,   Posted in: Business Growth, Business Profits, Business Sales, Business Win, Growing Business, Growing Jobs, Growing Profits, Growing Sales, Uncategorized

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