Abstract
Wm Morrison Supermarkets Plc or Morrisons, as it is commonly known, was founded by William Morrison in 1899, and is now led by his son Ken Morrison. From an egg and butter stall in Bradford, the company developed into market stalls until 1985 when a small store was opened in the town center. From 1958 to 1967, Morrisons kept on developing and went public in 1967.
In March 2004, Morrisons took over Safeway creating a new force in the UK food retailing market. Morrisons is currently in the midst of the acquisition process of Safeway. This would be a long-term process and according to a Mintel report , the customer hasn't yet linked the two brands. With this acquisition, Morrisons is the new force to be reckoned with in the UK retailing environment behind the three giants, with 13.1% of market share.
The main strength for the group constitutes its continual focus on quality and value, while remaining competitive on price. The Morrisons supermarkets, according to the same Mintel report, are renowned "for their no nonsense, no frills approach to retailing". Moreover, Morrisons has enjoyed a strong financial record since its listing on the stock market in 1967. Morrisons also got its own strong brand reputed for its quality and value.
"The board of Safeway continues to believe that a joint venture with Morrisons represents an opportunity to create a new dynamic force in UK food retailing", said David Webster, Safeway chairman.
The acquisition process of Safeway require lots of expertise and experience. There is currently some debate regarding the future of Morrisons and its ability to merge the Safeway outlet into the group.
