Morrisons Recovery in supermarkets has shone the spotlight on Morrisons, which was receiving press ...
Recovery in supermarkets has shone the spotlight on Morrisons, which was receiving press for the wrong reasons back in 2004.
After acquiring Safeway, the management was ill-prepared for problems within its grocery stores and its share price dropped to one of the lowest among supermarkets.
The underperformance meant the market overlooked the potential for margin improvement. However, in early 2006, the company surprised with a trading statement that led the share price to jump.
As one of the four major food retailers in the UK, Morrisons operates around 400 stores with half containing petrol stations.
Its share price as at 26 March was 308.75p with its 52-week high coming in a few weeks ago at 325p. The share price has risen 21.32% over the past year with its lowest point coming during the correction last year at 183.25p on 2 May 2006.
Latest news from the supermarket chain is that it is considering selling up to £1bn worth of stores in a bid to defend itself from private equity takeovers after chief executive Marc Bolland announced a £450m makeover that will see its brand and advertising campaigns revitalised.