Morrisons Boss Admits Self-Checkouts 'Went Too Far' Amid Turnaround Plan

The UK's grocery landscape has witnessed a shift in recent years, with many supermarkets embracing self-service checkouts to boost efficiency and cut costs. However, this trend has sparked discontent among customers who prefer human interaction at the till. Now, even some of the biggest chains are reconsidering their reliance on self-checkouts.

Morrisons, the Bradford-based supermarket, has become the latest to acknowledge the shortcomings of this technology. Its CEO, David Baitiéh, has admitted that the reliance on self-checkouts "went too far", echoing concerns voiced by other retailers. Last year, Asda's chief financial officer, Michael Gleeson, declared that the technology had reached its limit, announcing a £30 million investment in hiring more staff for traditional checkouts. Similarly, Northern grocer Booths ditched almost all of its self-checkouts in 2022, citing inadequate customer service.

While some retailers, such as Tesco, remain staunch supporters of self-checkout technology, the growing trend towards re-evaluating its impact highlights the increasing importance of customer experience in the competitive grocery market.

Baitiéh's admission comes as part of a wider turnaround plan aimed at restoring Morrisons to its former glory following a decline in market share and the takeover by the American private equity firm Clayton, Dubilier & Rice (CD&R) in 2021. The takeover removed Morrisons from the London Stock Exchange, and shortly after, soaring interest rates put pressure on highly leveraged companies, pushing Morrisons to a £1.1 billion loss in the year to October 2023.

In a bid to regain customer trust and boost sales, Baitiéh has launched a series of initiatives. These include matching prices with discounters Aldi and Lidl, expanding the number of convenience stores, and placing a greater emphasis on customer feedback.

The turnaround plan has yielded some positive results. Morrisons' total sales, excluding fuel, rose 3.7% to £3.8 billion in the three months to the end of April, with underlying earnings excluding fuel up 16% to £321 million. The supermarket has also reduced its borrowings to £4 billion after a debt reduction tender and struck a £2.5 billion deal to sell its 337 petrol forecourts to Motor Fuel Group (MFG), a forecourt operator also owned by CD&R.

While Baitiéh's turnaround plan appears to be showing early signs of success, the challenges facing Morrisons remain significant. The company must navigate a highly competitive market, manage its debt burden, and regain the trust of customers who may have been alienated by its previous reliance on self-checkouts. Only time will tell if Baitiéh's bold approach can revitalise Morrisons and return it to its former position as a leading supermarket in the UK.