Morrisons ‘bounces back’ from Blue Yonder attack but cost cuts continue

Morrisons boss Rami Baitiéh today said it has “bounced back” from last year’s Blue Yonder cyberattack, as the supermarket revealed Q2 like-for-like sales up 3.9%.

Baitiéh also said the outlook was looking up for Morrisons against what he called a “challenging” backdrop, saying its overhaul of Market Street would give the retailer a “tighter, sharper range”.

The Grocer exclusively revealed last month that the supermarket was to carry out a major overhaul of its UK stores as it seeks to bring in a more premium farm shop-style fresh food offer for customers.

The revamp is being spearheaded under the new strategy called Morrisons Magic, led by the company’s new group trading director Andrew Staniland.

Morrisons’ Warrington store become the first to integrate the changes, with major changes to the store including the removal of 2,500 SKUs and addition of 500 new SKUs to its lineup.

Baitiéh said trials of the new initiatives, including also a new World Food offer, has proved successful although Morrisons has also been looking at how it slashes costs, including making changes to “modernise” Market Street.

In March it revaled it was closing 72 fresh meat and fish counters, along with 52 cafés, 17 convenience stores and 13 florists, as he announced plans for hundreds of millions in savings.

It also closed all 18 branches of its Market Kitchen grocery/takeaway fusion concept – first introduced in its Canning Town store in 2019.

Baitiéh said the quarter, covering the 13 weeks ending April 27, had seen Morrisons make a further £58m of cost savings, with his initial £700m target now exceeded. The target was increased to £1bn by the end of FY26, at Morrisons Q1 results.

Total sales in the period were up 4.2% to £3.9bn.

“I’m pleased to report that Morrisons has bounced back strongly from the disruption of the Blue Yonder cyberattack in November 2024 with like-for-like sales growth of 3.9% in the second quarter,” said Baitiéh.

“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.

“The renewal and modernisation of Morrisons continues at pace. During the period we commenced trials of a number of new in-store initiatives including a new look Market Street with farm shop influences and more added-value products; a new World Foods offer; and a tighter, sharper range which highlights innovation and newness across the store. Customer reaction has been very positive with Morrisons fresh food strengths and outstanding value shining through strongly.

”We also made strong progress with the expansion of Morrisons Daily, opening 42 new franchise-owned stores in the quarter, and we see potential for hundreds more stores as we expand further in the growing and fragmented convenience market.”