The British retail sector is undergoing a period of transformation and growth, led by two major players: Morrisons and Costco UK. Both companies have recently outlined their strategic roadmaps and financial results, highlighting evolving trends in the UK food distribution market.
Morrisons recently gathered its suppliers to unveil its core priorities for the next twelve months. CEO Rami Baitiéh announced that the company will focus on two key objectives: enhancing brand perception and gaining market share through volume growth. To achieve this, Morrisons has launched an ambitious new strategy called Morrisons Magic, based on five pillars: competitive pricing, in-store merchandising improvements, product quality, assortment and innovation, and a complete overhaul of the brand’s Market Street concept.
The Warrington store will serve as the pilot site for this transformation, designed to offer a more modern, streamlined shopping experience aligned with today’s consumer preferences. Simultaneously, the retailer is doubling down on convenience, aiming to open 400 Morrisons Daily stores by 2026—an expansion projected to generate sales equivalent to 15 traditional supermarkets.
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Meanwhile, Costco UK has reported record-breaking annual sales, exceeding £5 billion for the first time. With total sales reaching £5.3 billion for the fiscal year ending in September 2024, Costco solidifies its position as the UK’s second-largest food wholesaler, trailing only Tesco-owned Booker.
Costco’s overall sales grew by 8%, with 95% of its revenue still coming from its 29 physical warehouses across the UK. Online sales also saw solid growth, rising 6.2% to reach £266 million, confirming Costco’s ability to scale digitally while staying true to its wholesale roots.
