You work for a company called Morrisons, a supermarket chain in the UK: Communication Skills Case Study, NUI, Ireland

You work for a company called Morrisons, a supermarket chain in the UK. Read the case study (two articles) below and identify the main points. Create a set of up to six presentation slides that summarise these main points to send to one of your senior colleagues who are new to the company.

You will not be required to speak, so these slides need to contain all the key information from the case study and need to be written clearly so that your colleague can understand it.

Morrisons

Morrisons sparkles with an 8.5% rise in sales over the festive period Champagne and salmon lead the way as expectations rise for UK supermarket sales.

Strong demand for luxury Christmas favorites helped to drive an 8.5% rise in sales at Morrisons over the festive period, as the chain kicked off reporting on what is expected to be a bumper trading period for supermarkets.

Morrisons said online sales had tripled and growth was boosted by strong demand for festive favorites such as champagne and salmon as families made the most of the quieter festivities during the pandemic.

Sales in Morrisons’s established stores rose 7.3% in the nine weeks to 3 January but that was boosted by a 1.2% rise in wholesale sales via the retailer’s deal with Amazon and to supply convenience stores.

The group delivered 35,000 of its new food boxes, which can be ordered by phone, in the two weeks before Christmas. The supermarket was the only one of the UK’s four largest chains to gain market share over Christmas, according to analysts at Kantar, as it cut prices and increased home deliveries.

Morrisons said customer shopping patterns were different this year, as Covid restrictions prevented larger gatherings of friends and family. Champagne sales were up 64% compared with last year, while sales of the whole salmon rose 40%. David Potts, the chief executive, said: “Customers were determined to have a good Christmas even if it was quieter than usual.”

He said the company had “put its assets at the disposal of the country” and this would include three Morrisons stores hosting vaccination centers in their car parks from Monday. Potts said he had offered up another 37 sites for use if required.

The chain said that despite the “extremely unpredictable current circumstances” it still expected profit for the current year to be in line with expectations. Morrisons’s profits are likely to be less than half the £420m to £440m once hoped for after it agreed to pay back £230m of the government’s business rates relief.

The company said Covid-19 safety measures, including the cost of coverage for vulnerable staff who must now shield at home, would also now rise by £10m to £280m under the latest lockdown rules. Nearly 7% of staff are currently off work, more than double the typical number for the time of year, because of the impact of test and trace, and the need to self-isolate or shield at home.

Closing in-store cafes and lower fuel sales resulting from the government’s “stay at home” decree will hit profits by another £10m. However, the Covid-related hits to profit are largely expected to be offset by the benefit of higher sales as supermarkets pick up business resulting from the closure of restaurants, pubs, and cafes.

The chain has also spent £65m on preparing for the end of Brexit transition this month, including building up stocks of some items to prevent any shortages. Potts said about 81 product lines, including 22 types of red wine, canned fruit, and pasta, were held up in Europe as some haulers were refusing to travel to the UK because of concerns about the new variant of the Covid-19 virus and additional paperwork resulting from the end of Brexit transition.

But Potts said he was “absolutely not” concerned and expected the goods to be delivered soon. “I don’t think there will be a shortage of red wine,” he said, pointing out that Morrisons sold more than 100 types of red wine. “We are ready for all circumstances,” he said.

He said it was too early to tell if there would be hold-ups at Channel ports after new rules on trading with the European Union came into force this month, as currently, the volume of shipments was very low. Potts said his main effort to offset issues caused by Brexit would be in considering sourcing more products from the UK.

Morrison’s sources two-thirds of its goods in the UK and Potts wants to increase that further. “I’m going to be looking for British entrepreneurs starting a company despite the [difficult] time,” he said.

Morrisons can have its online cake and eat it

Price cuts and champagne give supermarket chains cause to celebrate. Morrisons can chart its recent history in panettones. The festive Italian bread was a centerpiece in its ill-fated move upmarket, with chief executive Dalton Philips boasting in 2010 that in-store bakeries were able to turn them out at half the price of imported brands. The panettone outlasted him.

Annual sales had doubled to more than 400,000 by 2016, a year after poor Christmas trading served as concluding evidence that Mr. Philips had moved the Bradford-based supermarket chain too far from its parsimonious roots.

Though peak panettone now looks to have passed (“we sold a total of 271,072 for the full Christmas period,” a patient spokeswoman tells Lombard), it has still merited a mention in both the 2020 and 2021 festive season investor calls. CEO David Potts’ continued enthusiasm might reflect that Morrisons’s own-brand panettone now sells for £7, versus £2 when he took over from Mr. Philips five years ago.

All this cake talk is not totally irrelevant to the investment case. The company’s latest update shows how Mr. Potts has delivered many of the promises made by his predecessor, who could never square how to sell special occasion luxuries while keeping average prices low enough to compete with the German discounters Aldi and Lidl.

Talk of booming demand for champagne and smoked salmon in Morrisons’s statement is undercut by continuing price cuts on staples, which according to Goldman Sachs have lowered the typical basket cost to within 4 percent of Aldi.

Online has been the growth engine, with Morrison’s managing to exploit its last-mover status among the Big Four grocers. Having last year loosened exclusivity restrictions on an eCommerce partnership signed with Ocado in 2014, Morrisons was able to meet lockdown demand by introducing in-store picking and expanding partnerships with Amazon and Deliveroo. Kantar data published on Tuesday showed that nearly 13 percent of UK grocery sales in December were online, up from 7.8 percent a year ago, with Morrisons the clear sector winner on sales growth of 190 percent.

The rapid capacity expansion has been costly but Morrisons says online is already profitable. Just as important is the broadening of the customer base. Unlike its main rivals, Morrisons has a smaller share of the online market than of in-store sales. Every new sign-up is less likely to be at the expense of a supermarket visitor.

Shopping habits formed during the pandemic are likely to stick. And while the cost of maintaining store estates to serve fewer customers will drag on supermarket profit margins in the coming years, Morrisons’s growing overall market share means it should suffer less than Tesco and J Sainsbury. Though picking post-lockdown sector winners won’t be a piece of cake, Morrisons looks to have the right ingredients.