Morrisons has 'bounced back' from cyber attack, says boss
The chief executive of supermarket chain Morrisons has hailed the group's recovery from a cyber-attack.
Rami Baitiéh said the grocery firm had 'bounced back strongly' since its technology provider, Blue Yonder, suffered a ransomware incident last November.
Morrisons constructed a new warehouse management system to maintain its stock levels after the hack badly disrupted its operations.
Its like-for-like revenue growth subsequently slowed to just 2.1 per cent in the quarter ending 26 January, compared to 4.9 per cent over the prior three months.
However, the Bradford-based retailer reported that its comparable turnover increased by 3.9 per cent in the 13 weeks ending 27 April, while total sales expanded by 4.2 per cent to £3.9billion.
Morrisons also revealed that its first-half underlying earnings before nasties climbed by 7.2 per cent to £344million.
The group, which is owned by US private equity firm Clayton, Dubilier & Rice, opened 42 franchise sites during the period, taking the overall number of Morrisons Daily convenience outlets to above 1,700.
Alongside this, it began trials of several in-store schemes, introducing a new World Foods offer and a revamped fresh food counter concept, Market Street, that more closely resembles a farm shop.
Baitiéh said: 'Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds.
'Throughout the first half, we've worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.'
Morrisons further announced that it had raised its cost savings target to £1billion after surpassing its initial £700million goal during the last quarter.
The company unveiled the original cost-cutting target two years ago to help finance price reductions for consumers struggling with inflationary pressures, caused mainly by soaring energy bills and supply chain disruptions.
As part of these plans, Morrisons declared its intention in March to shut over 50 cafes, four pharmacies, multiple convenience stores and florists, and dozens of counters serving meat, fish, or hot food.
About 365 jobs are at risk of permanent redundancy due to the closures, with the majority of those affected working in the convenience stores.
Morrisons exited the convenience market in 2015 after selling its M local sites, but returned to the sector just months later with the launch of its Morrisons Daily brand.
It currently holds an 8.4 per cent share of the UK grocery market, according to recent data from market research organisation Kantar.
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