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Should You Buy Morrisons Case Study

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Should You Buy Morrisons Case Study
Should you buy Morrisons shares?

Morrisons are the fourth largest supermarket in the United Kingdom and the smallest in the “Big Four”. Legally they are known as Wm Morrisons, but customers know them as simply Morrisons, after being formally known as Safeway up until 2004. The chain was founded back in 1899 and stands as one of the oldest supermarket retailers in the UK. Since their inception they have expanded to have over 600 stores within the British Isles.

Are you looking to invest in the supermarket sector? Read on to see if you should buy Morrisons shares.

Stuck in a Rut

Tesco majorly underperformed in 2013, especially in the final three quarters of the year. It prompted many to believe that a reshuffle in the “Big Four” was on the horizon; something that Morrisons could take advantage of. Sadly this wouldn’t be the case, as Morrisons failed to up the ante and came across as a confused retailer to many investors. They can’t seem to decide what their target market is, which has left them in a rut. At arguably the most pivotal time in the company’s history they also made the mistake of not embracing the world of online shopping. Posting disappointing online shopping revenues, which have been attributed to shoddy advertising and promotion by the chain. For Morrions shares to prosper again, the company must find a way to break free from this. …show more content…
Their stores have been branded as “old fashioned” by many retail analysts, with their pricing and promotion strategy coming across as “confusing”. The company has not only lost sight of what its target market image is, but it has also lost its own brand identity somewhere along the way as well. If the company wish to turn things around and make Morrisons shares appealing again, then this issue needs to be addressed by management sooner rather than later.
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