Morrisons aims to broaden its appeal as shoppers target more online services

Where could supermarkets go from here? Recent comments by Morrisons CEO David Potts suggest they believe the future lies in both increased and diversified online sales.

He said: “Our longer-term strategy builds a broader, stronger, more popular, more accessible new Morrisons, in a way that is capital light and delivers profitable growth. I believe our response to Covid-19 is bringing that future closer.”

Morrisons has partnered with Amazon to offer a same-day delivery service and with Deliveroo to provide a courier service, promising some deliveries in under an hour.

James Logie, MD of Retail Management Consultants in Stirling, says the sudden ramping up of online delivery capacity is unlikely to be reversed. He said: “Working from home or staying at home has created new habits and ways of working which will become the new normal.

“Until now, online deliveries have been an awkward luxury offering from the supermarkets. Expensive to run and operate, they were a flagship to say we’re pro-future, but now it’s been turbocharged in a way they didn’t think they would or could happen.

“The older generation have had to learn to equip themselves with the skills to order online and I don’t see that changing any time soon.

“I could see easily the rise of ‘dark stores’ – stores which are in non-prime locations, warehouses in all but name that are used to fulfil deliveries.

“Supermarkets are designed around shopping. They’re not a logical layout, they’re trying to tempt you with offers, and marketing tactics, so the logistics of online shopping become difficult because of the way stores are set up, whereas Amazon’s warehouses are set up with deliveries in mind.”

And, Logie predicts, we can expect to see major changes in stores themselves.

He said: “Supermarkets are trying to do their level best to protect customers and provide a good service during the outbreak. They want to protect you when you enter the store, make sure everyone respects the rules but not penalise customers either.

“They’re looking to keep prices down and enhance their reputation as trusted partners and hopefully people will remember that when we come out the other side. There will be winners and losers.

“I believe mass unemployment in the UK will follow this recession, people will focus on value and efficiency, and supermarkets will have to make shopping as frictionless as possible.

“It will mean tills will likely go. In recent years we’re already seeing the contactless revolution through smartphone payment and scanning-asyou-go then taking the trolley straight out of the door.”