Are you a Morrisons or a Tesco?

Business on a laptop

Posted by Lucy Beck on January 10, 2014

What on earth do we mean?

You may have seen recent news in the media about how the supermarkets have performed over the vital Christmas trading period. Both Morrisons and Tescos reported poor trading results, Tesco however redeemed some of this lost instore profit from customers preferring to shop with them online. Tesco launched their online business back in 2000 when the Cloud was ‘just a fad’; Morrisons launched theirs today, a staggering fourteen years later. Tescos now have one of the biggest online groceries businesses in the world with 50% of the UK market. So, although Tesco’s sales fell 2.4% on a like-for-like basis in the six weeks to 4th January, Tesco’s boss Phil Clarke admitted that if it wasn’t for the website, sales would have fallen by percentage points into double figures. In the six weeks over Christmas, Tesco had a turnover of £450 million from online grocery shopping; Morrisons missed out on that market completely and hence their particularly dismal trading figures. Will Hedden, sales trader at spread-betting firm IG, said: “There is the impression that more and more business is going online, and Morrisons has been slow to come into that area. “Their online offering is going to need to become pretty good, pretty quickly to compete.”

morrisons snowSo, back to the original question: Are you a Morrisons or a Tesco?

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