Blackfriar: Bringing a touch of the Waitrose experience to Morrisons

After just two months in the job, Morrisons' new boss Dalton Philips has recruited his first big hitter with the appointment of Waitrose number two, Richard Hodgson.

Hodgson is tipped to become Philips' right-hand man and is rumoured to be joining the Bradford-based grocer on a pay package of over 1m.

The move to Morrisons signifies a return to Yorkshire for 40 year-old Hodgson, who was born in Bridlington, raised in Leeds and spent ten years of his career at Leeds-based Asda.

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This is the common link between the two men. Hodgson worked under former Asda chief executive Allan Leighton, the same man who suggested Philips for the top Morrisons job.

Hodgson will take on the newly created role of Morrisons' group commercial director, responsible for trading and marketing.

He is best known for introducing the highly successful Essentials value range to upmarket grocer Waitrose.

The introduction of the budget range in March 2009 was crucial in reversing the exodus of customers who started leaving Waitrose for cheaper rivals when the recession kicked in.

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Analysts are speculating that part of his new role might be to lure upmarket shoppers to Morrisons, which has traditionally catered for the more cost-conscious end of the market.

Some pundits are even claiming that the arrival of Hodgson means that Philips has plans to take Morrisons upmarket.

But this makes no sense. Morrisons' heart lies in value retailing and it would never turn its back on this end of the market.

However Hodgson's arrival does mean that Philips is keen to address some of the retailer's failings.

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Morrisons is continuing to attract Southern shoppers to its former Safeway stores, but some critics have said that there is still a lack of upmarket produce.

As the economy exits recession, there is a belief that many shoppers will want to trade up again and may leave Morrisons if they feel it is not catering to the high end of the market as well as the cheaper end. This is where Hodgson's Waitrose experience will be invaluable.

Here is a man who has straddled both ends of the market – 10 years in the discount end with Asda and four upmarket with Waitrose.

Market sources believe he will bring a fresh pair of eyes to Morrisons and help retain upmarket shoppers when the market picks up.

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But he will also be expected to rejuvenate Morrisons' rather tired advertising campaigns.

While bringing in the likes of football pundit Alan Hansen, TV presenter Denise van Outen and Top Gear presenter Richard Hammond has attracted a new clientele, the ads are drifting somewhat with the addition of ever more B listed celebrities.

Expect something more interesting from Hodgson. This is the man who out-Sainsburied Sainsbury's by bringing in top chefs Delia Smith and Heston Blumenthal to publicise Waitrose at a time when Sainsbury's Jamie Oliver ads are looking tired and dated.

It is time to get your entries in for the Yorkshire Post Excellence in Business Awards.

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The fifth annual awards cele-brate outstanding businesses in this most enterprising of regions and culminate in a major ceremony in Leeds later this year, where the keynote speaker will be the Chancellor of the Exchequer, George Osborne.

This year's judges include supermarket supremo Sir Ken Morrison and Paul Fullerton, the Bank of England's agent for Yorkshire and Humber.

PLCs can enter for several awards including companies with a turnover between 10m and 50m; companies with a turnover of more than 50m; best company to work for; innovation of the year; exporter of the year; and university spin-out of the year.

Entries need to be in by June 22. Enter online at www.yorkshirepost.co.uk/excellence