The economy is showing signs of growth. Employers organisation CBI recently released the results of a survey showing that services were recovering and stabilising. Official figures show the GDP grew 0.3% in the last few months of 2009, after contracting for six quarters. With the economy showing signs of recovery, do you think retailers will find 2010 a better year than 2009?
The retail outlook for 2010 is difficult to predict; the economic environment continues to be challenging and food inflation is low. However, I think that Morrisons unique offer of high quality fresh food at great value prices will continue to attract customers throughout 2010.
There are fears that inflation may rise sharply in the near future, pushing up the cost of living and goods prices, and forcing customers to cut back on their weekly spend. Do you think inflation will affect the grocery market?
Inflation will have some affect on the grocery market, but it won’t alter areas such as volumes, with more Morrisons customers coming through the doors than ever before.
Over the past years, customers in the UK have demonstrated their changing tastes in many areas such as home cooking, ethical foods and value clothing ranges. Are there any areas in which demand is growing rapidly for a product or service?
Fresh products and ingredients continue to be popular as customers get creative in the kitchen and save money on meals out. For this reason increasing our range of products and new product development are key focuses for us.
The UK is known for having some of the most demanding customers in Europe. Do you think customers are becoming more choosy and having higher expectations?
Great value and low prices are in our DNA, that combined with fresh food, provenance and great service is attracting customers in to our stores. Shoppers want staff to know about the products they sell, which us why we train our staff in retails skills and our colleagues on the fresh food counters to be food specialists.