Morrisons is rolling out a major new range optimisation programme based on improved customer data, The Grocer has learned.
The retailer has recently completed trials across three supermarkets and is currently rolling the plan out more widely across its estate.
Morrisons is aiming to develop a more “customer-led, more curated range of products with the right products in the right store”.
The changes are being driven using data from transactions using its More Card loyalty scheme and MoreViu, a category management software tool that Morrisons began using just over a year ago.
Morrisons has found that around three quarters of its range accounts for just a fifth of its total sales. As a result, it said it was looking to move away from what it described as crowded ranges with less clarity for shoppers, to greater visibility for products that will improve ease of shop for customers and increase the sales potential of its products.
It said discussions with suppliers had been ongoing since the summer and that the plan would create an opportunity for suppliers to be “a bigger part of a smaller range” while driving “efficiency with higher volumes from fewer lines”.
The move would lead to more focus on bestsellers, allowing both Morrisons and its suppliers to share in growth of these sales, the retailer said.
It added that the changes were being carried out in an open and collaborative way with suppliers, and that both it and its suppliers were able to see the customer data upon which Morrisons is basing its decisions. Lines that are likely to be delisted would tend to be slower-selling or duplicative products, it said. However, it claimed these would be “offset by higher volumes on bigger lines”.
It insisted that the plans were not just about reducing range, but instead “giving customers something back in terms of better value, stronger promotions and new products”.
In terms of the trial stores, one has been focused purely on offering an ‘optimised’ range while others looked at different merchandising solutions. This included in petfood, where Morrisons merchandised all puppy products together rather than alongside the parent brand. This particular change is being rolled about across all stores from this week.
The optimisation programme as a whole is expected to run throughout 2027.
“We have clearly demonstrated in our trial stores that there is an opportunity to drive more volume from fewer lines, to improve availability and ease of shop for customers,” said Dan Cizek, Morrisons commercial director – central.
“By working closely in partnership with our suppliers, we will give customers a better, more focused range. Our recent market share performance and volume growth give us a strong platform for these discussions.”
Morrisons is not the only retailer currently looking seriously at range optimisation. In June, The Grocer revealed that Waitrose was embarking on a similar initiative after it found that 25% of its range accounted for just 3% of its sales.
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