Morrisons is aiming to recapture market share which has been lost to Aldi by overhauling its More loyalty scheme, as part of a turnaround strategy devised by chief executive Rami Baitiéh.
Discounter Aldi overtook Morrisons as the UK’s fourth largest grocer in 2022 and Baitiéh has reportedly told suppliers that investment into the More programme will include a major expansion of “member-only” pricing,
The membership scheme, which relaunched last year after the supermarket opted for cardless rewards in 2021, plans to increase the use of “hyper-personalised” offers following a My Points Boosters scheme in April, which allowed users to choose up to 10 brands from a personalised list of favourite products.
In July last year, the supermarket giant drafted in Eagle Eye, the tech company backed and run by former Tesco chiefs Sir Terry Leahy and Tim Mason, to power real-time, omnichannel and personalised consumer marketing activities and further develop its loyalty and promotional offering.
Since then, Morrisons has implemented Eagle Eye’s AIR platform to enhance its customer loyalty strategy; this allows customers to benefit from exclusive prices and earn points on selected products in store, online and on fuel.
Now Baitiéh has reportedly told suppliers that he plans to increase the number of transactions involving the loyalty scheme from 50% to 70%.
The chief executive described the current loyalty scheme as a “shield” but that he wanted to make it a “sword” against the supermarket’s competitors, with Morrisons and its private equity backers CD&R planning to inject millions into the new wave of offers.
The company’s turnaround plan has also led to the expansion of its retail media operation, including installing screens at Morrisons Market Street food counters, allowing advertisers to promote products that complement the counter range on offer as well as an additional moment to interact with customers in a part of the store where their products are not stocked.
Morrisons Media Group is operated in partnership with SMG, whose hief commercial officer Lee LeFeuvre recently said: “The new initiatives that we are launching in the digital media space will help Morrisons to stay competitive and offer brands even more ways to connect with customers.
“We know that digitisation of the in-store experience will be big this year, and we’re delighted that Morrisons will be embracing this as part of its Market Street offering. Our knowledge of Morrisons customers shows that value is a key factor in their purchases.”
The retailer’s advertising (pictured) is handled by Leo Burnett.
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