SIR Ken Morrison, the 74-year-old chairman of Wm Morrison, the Yorkshire-based supermarket group, is a self-confessed Scotland fan. He sponsors the national football team and every year he spends a week in the country on holiday - he’s just back from a short break recharging his batteries in Gleneagles. He has Scottish blood from his grandfather, too, but Morrison genuinely feels that he knows what the canny Scots shopper wants and says he can provide it.
In Hamilton this week to open one of his five new Morrisons stores, Sir Ken says that he can satisfy what he believes Scottish shoppers want: "A no-nonsense supermarket, offering honest, good value for money with an extensive range of products. They
are similar to Northerners.
"In 1899, my father started Morrisons from a single stall in a Yorkshire market, promising quality goods, great service and outstanding value for everyone. That hasn’t changed and our aim is not to be the biggest, but to be the best.
"We are now stocking 25,000 different products, 500 of which are Scottish products. Scots by their very nature are somewhat cautious, but we are very confident we fit well with the Scots’ basic philosophy that demands value for money."
Following the £3.3 billion Safeway acquisition in March 2004, Morrisons is now the UK’s fourth- largest supermarket group. But it certainly hasn’t been plain sailing for the company, once fêted by analysts and left to its own devices.
Since Wm Morrison listed its shares in 1967, shareholders enjoyed 36 unbroken years of sales and profits growth.
However, in 2004 the City spotlight shone directly on the difficult integration, bringing poor full-year results, profit warnings - and, adding embarrassment to injury, Sir Ken lost some of his key staff.
Even on Morrisons’ own calculation of cost savings and trading benefits, it is three years before the deal becomes earnings accretive.
Known in the industry for straight talking, Sir Ken is in no mood for apologies or regrets. He says: "You have to give us time. We are all working very hard and are getting where we want to be.
"It has been a slow process, but the response from the customers has been great. Customer flow and sales are up in the Safeway stores. You have to take the rough with the smooth. You can’t go out only on fine days, you’ve got to go out when it’s wet as well."
Competition is fierce from former Safeway stores that Morrison was obliged to sell to rivals such as Sainsbury and Tesco after a Competition Commission ruling, with many close to existing Morrison stores. He concedes that they are probably better competition than Safeway was, but is confident Scots will like what they see in the new Morrison stores.
It seems to be that Morrisons is the place to go for good value and wide choice - but competitors sneer only of a certain kind. If you want stacks of biscuits and cream cakes, then you are in the right place, but forget the more exotic fare, which competitors such as Sainsbury pride themselves on.
Sir Ken disagrees, saying: "There’s not so much difference. They say poor people need a bargain, well, wealthy people appreciate one and I believe Scots appreciate value for money. We are progressing well and I’m confident we will succeed."
Bob Stott, the group’s chief executive, was part of the visiting team to Hamilton. Stott has been pitched as a possible successor to Sir Ken, but the latter will not be drawn on when he might retire. "Ultimately, succession will be a necessity. But I’ve got no plans to say ‘in 2007 I’m going on my way’, or anything like that," he said.
One of his children, William, is in his early thirties and works with him. Surely it would be fate to have Wm Morrison, the company, run by William Morrison, grandson of the founder, but Sir Ken says it is not in his gift to give the job to his son. Sir Ken was the youngest child, brought up with five sisters.
"I have had a couple of family members working here. With me it was different, but I have always taken the view with kids that it’s no good putting them into jobs that they don’t really want, either through them feeling an obligation to you, or you trying to fulfil your ambitions through them."
TIMELINEA century of successful selling 1899: Business founded
1931: Kenneth Morrison born
1952: He takes over business
1958: Opens first self-service shop
1961: Opens first supermarket
1967: Floats firm on Stock Exchange
2000: Knighted
2003: Launches bid for Safeway
2004: £3.3 billion Safeway bid successful
2005: Set to open five new stores in Scotland and convert 42 Safeway stores to Morrison brand
Contrary to popular belief, transparency is not always goodSIR Ken Morrison was surprised to hear about the major talking point among Scots shoppers - his see-through bags.
In an in-house poll in
The Scotsman, of ten Safeway shoppers who have found their local store converted to Morrisons, the biggest complaint, with nine, was from those who hated the transparent versions, with an equal dislike of the yellow and black logo.
Opening hours came a close second.
Sir Ken was shocked at the result of our poll. He said: "I didn’t realise our see-through bags brought out this reaction.
"We use them because they are stronger and to add the white filler colour costs more. They are suitable bags and we need millions of them. As for the opening hours, what do people actually want?"
The opening hours now differ from the original Safeway hours, with Morrisons stores closing earlier.
He said: "Let me take a note of these issues. I do take comments on board because it’s important to give our customers what they want."
But it wasn’t all bad news for the supermarket chain.
Shoppers gave Morrisons the thumbs up for its selection of fruit and vegetables, with most of the respondents saying they were cheaper and of better quality than those which had previously been available from Safeway.
