Morrisons speeds up rollout of convenience format as it awaits outcome of takeover battle

The supermarket, currently the subject of a takeover battle, said that with its partner McColl’s, it now plans to convert 350 stores to Morrisons Daily by November 2022, up from the original target of 300 by the end of 2023.

Releasing its interim figures for the half year to 1 August, Morrisons said it had increased turnover by 3.7% to £9.05bn compared with the same period last year, although pre-tax profit was down 37% to £105m.

The fall was attributed to Covid-19 costs, as well as lost profit in cafés, fuel and food-to-go.

Within these overall results, online sales were particularly strong, up 48% on the same period last year and 237% on two years ago.

The chain warned of the continuing impact of delivery driver shortages.

Chairman Andrew Higginson said: “Across the business, the whole Morrisons team has shown commendable resilience facing into a variety of continuing challenges during the first half, including the ongoing pandemic, disruption at some of our partner suppliers, and the impact on our supply chain of HGV driver shortages.”

Morrisons reiterated that it had received takeover offers for the company from Clayton, Dubilier & Rice (CD&R) and Fortress and was recommending CD&R’s offer of 285p per share.

Shareholders will be asked to approve this offer at a meeting to be held in the week beginning 18 October, it added.

As neither bidder has said their offer is final, Morrisons is still in talks with CD&R, Fortress and the Takeover Panel about an auction to decide its future.

Any auction will take place before the planned shareholder meetings, on a date to be announced by the Takeover Panel.