Morrisons Set For Image Makeover

Tue, 13 Mar 2007
 
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UK Supermarket chain Morrison is expected to ditch its trademark black and yellow logo as part of plans to overhaul its image and under-go a major strategic review .

Morrisons new chief executive, Marc Bolland, has ordered the revamp after spending nearly six months conducting a review of the country’s fourth largest supermarket retailer.

Mr Bolland will announce his conclusions at a conference on Thursday, as well as company accounts, which are expected to underline the recovery of the group after the difficulties encountered with the integration of Safeway.

Full-year profits for the group are expected to be around £320 million, against a £300 million loss last year.

The company’s current slogan "More reasons to shop at…" will be axed, along with their transparent carrier bags .

The retailer may also raise the possibility of opening a chain of smaller town centre stores, particularly in urban locations where outlets could be bigger than traditional convenience store formats such as Tesco Express.

On Friday night Morrisons' shares hit an all-time high of 320.25p, a rise of 4 per cent on the day, amid speculation that the grocery retailer may announce a property restructuring with a cash return to its shareholders or that it might be a target for private equity bidders.

However David McCarthy, analyst at Citigroup (advisers to Morrisons), warned investors not to expect too much. He said, "Morrisons has an outstanding freehold content, but a major property disposal programme could be a mistake."

"Limited disposals to fund share buybacks or an increase in the dividend are more likely to happen," he added.

Green campaigners will also be keen to hear any new commitments to environmental issues by the supermarket, which is already lagging behind in the race for green initiatives.

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