In 2025, Morrisons, one of the UK’s largest supermarket chains, celebrates two years under the leadership of Rami Baitiéh. Since his appointment as CEO, the company has experienced significant changes, navigating a competitive and challenging retail landscape while implementing strategic shifts aimed at improving its position within the UK grocery market.
As Morrisons enters this second year of its transformation, it’s clear that Baitiéh’s leadership has already made a meaningful impact. With a strong focus on operational efficiency, customer engagement, and technological advancements, the company is evolving to meet the changing demands of the market. Here’s a look at how Morrisons has fared under its new leadership.
Reshaping Operations for Long-Term Success
One of the first moves Baitiéh made was to focus on the core operational structure of Morrisons. Over the past two years, the company has streamlined its store portfolio and refocused its resources on its strongest areas. Underperforming stores were closed, and the company shifted away from non-core activities, allowing it to concentrate on its more profitable segments.
Perhaps most notably, Morrisons has made impressive strides in its financial health. Since Baitiéh took the helm, the company has significantly reduced its debt, which has been a crucial step in stabilising its financial position. The reduction of debt has not only lessened financial pressure but has also freed up capital for reinvestment into new ventures, including store refurbishments and digital innovations.
Customer Engagement and the Digital Shift
Customer loyalty has been a major focus for Morrisons in the past two years. The revamped Morrisons More loyalty card program has proven to be a key initiative in this area. The loyalty program now offers customers personalised discounts and rewards, fostering a deeper connection with the brand. With more customers looking for value-driven experiences, this initiative has helped Morrisons to secure repeat business, building stronger customer relationships.
In addition to loyalty initiatives, Morrisons has heavily invested in enhancing its digital presence. The company has worked to improve its online shopping experience, including faster delivery times, better user interface on its website and app, and improved product availability. The online grocery market continues to grow, and Morrisons has adapted to this by ensuring its customers have an effortless and efficient experience when shopping from home.
Technology-Driven Innovation
Under Baitiéh’s leadership, Morrisons has embraced technological advancements to stay ahead in a competitive retail market. The company has invested in AI and machine learning to streamline operations, especially in areas like inventory management and demand forecasting. These technologies have allowed the company to optimise its supply chain, reduce waste, and increase efficiency.
Additionally, Morrisons has worked to integrate generative AI into its product development processes. Similar to some of its competitors, such as Walmart, the company has used AI tools to predict trends and quickly design and launch new products. This ability to move quickly in response to changing consumer tastes gives Morrisons a competitive edge, particularly in the highly dynamic food retail market.
Sustainability at the Core
Sustainability remains a cornerstone of Morrisons’ strategy. Over the past two years, the company has made notable progress in reducing its environmental footprint. Morrisons has continued its commitment to reducing plastic packaging and improving sustainability in its supply chain. Through its partnership with suppliers, the company has increased its focus on sourcing products more sustainably and ensuring that products are ethically produced.
Furthermore, Morrisons has expanded its renewable energy usage across stores and distribution centres, bringing it closer to its goal of achieving carbon neutrality in the coming years. As consumers become increasingly aware of environmental issues, these steps align Morrisons with consumer expectations and enhance its brand reputation as a responsible retailer.
Financial Stability and Market Position
Morrisons has managed to weather the storm of rising inflation, supply chain disruptions, and an increasingly competitive grocery market. The company’s efforts to reduce costs, optimise its supply chain, and focus on its core strengths have paid off. In recent financial reports, Morrisons has shown consistent growth, even amid challenging conditions.
Its market position remains strong, particularly in the fresh food category, where the brand has built a reputation for quality. Morrisons continues to face intense competition from discount retailers like Aldi and Lidl, as well as its larger counterparts, Tesco and Sainsbury’s. However, with its enhanced focus on fresh produce, customer loyalty, and technological advancements, Morrisons has carved out a solid position in the UK grocery market.
Challenges Ahead
Despite the positive strides, challenges remain. The rise of e-commerce continues to reshape the grocery retail landscape, and Morrisons must continue to evolve its online offerings to compete effectively. The supermarket also faces growing pressure to maintain its low-price position while responding to increased operational costs and supply chain issues.
In addition, Morrisons must continue to differentiate itself from competitors by finding new ways to offer value to its customers. As the cost of living remains a concern for many shoppers, Morrisons will need to balance its premium product offerings with affordable options that appeal to a broad customer base.
Looking Forward
Morrisons has made significant progress under Rami Baitiéh’s leadership, transforming itself into a more efficient, customer-focused, and tech-driven company. While challenges persist, the supermarket is well-positioned for future success. With a strong financial base, an expanding digital presence, and a commitment to sustainability, Morrisons is ready to continue evolving in a rapidly changing retail landscape.
As Morrisons heads into the next phase of its transformation, its ability to adapt to consumer trends, optimise operations, and continue innovating will be key to maintaining its competitive edge. Two years in, Baitiéh has laid a solid foundation, and the future looks promising for Morrisons as it continues to mature under his leadership.
