LONDON ? Wm Morrison is hoping an influx of convenience stores will buoy its sagging sales, The Telegraph reports. After announcing earlier this year that it would be opening at least 20 c-stores by year?s end, Morrison CEO Dalton Philips reveals the chain?s strategy for the future.
Successful pilots of the M Local convenience store in three locations convinced the company to move forward with its plans to add more locations this year, plus 50 more in 2013. Morrisons has a lot of catching up to do in the convenience store market, as competitors Sainsbury?s and Tesco already have a growing contingent of c-stores in operation.
Philips sees convenience stores as a key part of the company?s overall plan for reversing its declining sales. ?Although the sustained pressure on consumer spending was reflected in our like-for-like sales performance, we have made further good progress against our strategic objectives ? the building blocks which are the foundations of the future success of our business,? he said.
Other changes include selling wine via Morrisons Cellar website and pumping up its new Fresh Formats stores, which stock more fresh food. Pre-tax profits dropped from �449 million to �440 million during the first half of the year to July 29. However, Morrisons indicated that number is better than had been predicted.