Morrisons sales drop: there's work to be done

Like-for-like sales shrink by 1.8 per cent.

In the 13 weeks to 5 May 2013, Morrisons saw total sales rise by 0.6 per cent but like-for-like sales shrink by 1.8 per cent. While Morrisons has experienced an easing in LFL declines during Q1, the grocer’s performance serves to highlight that it has continued to underperform in a highly competitive market. Moreover, while its current strategic focuses are sensible, and have the potential to get Morrisons back on track in the medium-long term, they will inevitably take time to bear fruit.

With the UK food & grocery market increasingly being characterised by falling customer loyalty and low volume growth, which is in turn being met with heavy promotional activity among the main players, Morrisons has been forced to react. To this end, there has been a noticeable sharpening of promotional activity with the grocer building upon investment into innovative campaigns such as Payday Bonus, with the launch of its new Our Pick of the Street campaign – which focuses in particular on fresh products.

Elsewhere, it has been much keener in seeking to communicate its key differentiators. This period saw a greater focus on marketing extolling the virtues of Morrisons’ virtual integration strategy, via the medium of a high profile television campaign featuring family favourites Ant and Dec, complemented by full-page spots in newspapers. The benefits of its sourcing and distribution strategy will have resonated well with consumers amid the horsemeat scandal which has understanding eroded trust in grocery retailers. Indeed, Morrisons was one of the few grocers unaffected by the furore.

This period saw Morrisons make further progress across a number of areas which are key to its long term health. It remains on track to operating 100 M Local by year end having acquired a tranche of outlets from failed retailers such as Blockbuster and Jessops. Morrisons also plans to have implemented its new Fresh food concept across 40 per cent of its portfolio by the end of its financial year; further strengthening its credentials for quality and freshness. However, while it plans to have a full online food & grocery offer for 2014, the specifics remain unclear. Moreover, its high profile discussions with Ocado – which are likely to lead to Ocado providing technological expertise, as well possible use of one of its distribution centres – have yet to yield any results. 

Morrisons continues to be a soundly run retailer and many of its current investments – particularly in relation to online and convenience – are set to leave it significantly better positioned in the medium-to-long term. However, it will continue to face short term challenges as it plays catch up with rivals.  Moreover, while the grocer is displaying greater adeptness in communicating its key points of differentiation, there is still much work to be done around strengthening price perceptions.

Morrisons. Photograph: Getty Images

 Managing Director of Conlumino

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What’s the secret of the world’s best-paid sports manager? Ask the Chicago Cubs

Theo Epstein is a star because he values the person as much as the player.

As I write, the Chicago Cubs, perennial underachievers, are three wins away from reaching baseball’s World Series for the first time since 1945. By the time you read this they may have crashed out. Besides, baseball – like cricket – is a language that asks a lot of its translators. So, in writing about the Cubs, I’ll skip the baseball bits. Fortunately, the lessons of the Cubs’ success (they were the outstanding team of 2016, even if they don’t win the World Series) transcend baseball.

To understand the future of sport – and perhaps employment – I recommend a pair of profiles of Theo Epstein, the president of baseball operations for the Cubs, one published in the New York Times and the other written by David Axelrod (Barack Obama’s strategist) for the New Yorker.

Epstein, 42, has just agreed a contract extension worth $50m over five years, making him the highest-paid non-player in professional sport. There is plenty in the profiles on his whizzy use of data analytics; his algorithmic tests that measure players’ co-ordination (essentially using neuroscience to measure talent); as well as the Cubs’ coaching programme dedicated to mental health and managing stress. Most timely and important of all is Epstein’s emphasis on character. He talks about “scouting the person more than the player”. He wants the right kind of people on the field.

“In the draft room [where the team decides which players to sign], we will always spend more than half the time talking about the person rather than the player,” he has said. “We ask our scouts to provide three detailed examples of how these young players faced adversity on the field and responded to it, and three examples of how they faced adversity off the field.”

Epstein is well known for empowering a “geek department” inside his baseball teams. Yet instead of perceiving a conflict between science and the human realm, he sees the two as part of the same big picture. He craves players with character who can benefit from the insights of science.

“Character” is a vexed subject inside sport. It sets off uncomfortable associations. Talking too much about character – building it, or even just valuing it – sounds dangerously close to endorsing an amateur ethos. Victorian public schools often celebrated sport explicitly in opposition to intelligence, even achievement. H H Almond, the headmaster of Loretto from 1862, got an A for candour (if nothing else) when he ranked his school’s priorities: “First – Character. Second – Physique. Third – Intelligence.”

The Victorian notion of games cast a long shadow over sport and society in the 20th century. The first phase of ultra-professionalism, in the office as well as on the sports field, was a reaction to Almond’s set of values. The concept of character was recast as a consolation prize, doled out to the class dunce or the twelfth man. Crucially, reformers and nostalgics alike bought in to the historical perception of a separation or conflict between character, intellectual life and sporting achievement.

The Cubs, however, know better. To adapt Almond’s clumsy saying: intelligence and physical skills derive, significantly though not entirely, from character. Character is now being understood not as the destination, but the foundation, even the process.

This is an overdue reassessment. In the loosest terms, I would identify three phases in the development of professional sport. Phase one optimised the body. Sadly, though we are still inching forward, the human body is now reaching the outer wall of virtuosity. All sports will tail off in speed of progress, in terms of pure physicality.

Phase two of modern sport turned to psychology. Realising how hard it is to gain an edge through physical conditioning, everyone suddenly started talking about the mind: the inner game of this, the mental game of that. However, reconfiguring the mental approach of elite athletes – already in their twenties and thirties, with deeply ingrained habits and highly evolved psychological software – is also exceptionally difficult. That is why many top athletes recoil from conventional “sports psychology”; the discipline is oversold and under-sceptical.

We are now entering phase three: the whole person. Sustained high achievement relies on something much deeper than a few sessions with a sports psychologist. So you need the right people in the room.

Coaches in future will be numerate and intellectually unthreatened by the scientific advances that illuminate sport. But the best coaches will never lose sight of a parallel truth: that although science can help us to understand what happens on the sports field, and sometimes how to do it better, it cannot conveniently convert athletes into inert particles, as though it were a ­physical science. Coaching can benefit from ­science but remains an art – one that revolves around understanding and helping people.

In most sports, players and coaches are really in the business of decision-making. The winning team, as Pep Guardiola says, makes more good decisions. Sport, in other words, advances when it trains people to make better decisions. There are now highly evolved analytical techniques for understanding how those decisions influence results. However, the athletes themselves are still people, imperfect and imperfectible. If you want machines, you get dummies.

This month, I was asked to found a new institute of advanced sports studies at the University of Buckingham. The mission is to create undergraduate and postgraduate courses that attend to the entire mindset – critical thinking, ethics and leadership, as well as data analytics and sports science: a kind of “PPE of sport”. After a misleading triple fissure – character, body, mind – sport is starting to put the pieces back together again. That’s why, this month, I’m rooting for Epstein’s Cubs.

Ed Smith is a journalist and author, most recently of Luck. He is a former professional cricketer and played for both Middlesex and England.

This article first appeared in the 20 October 2016 issue of the New Statesman, Brothers in blood