Greg Wright: An injection of youth as Morrisons ready for next step

ONCE it was the policemen who seemed to be getting much younger. Then it was the Prime Ministers.

Now, it seems the chief executives of big Yorkshire businesses have become implausibly youthful.

When Dalton Philips, the new chief executive of Morrisons, walked up to the podium at Bradford Chamber of Commerce's annual dinner, at least one wag was heard to ask: "Is he old enough?"

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Mr Philips, who looks younger than his 42 years, managed to charm the Bradford audience, who pretty much conformed to central casting's image of "gritty, no-nonsense, commercial folk".

Eighteen months ago, Bradford was just a remote dot on the map for Mr Philips, who was hired by Morrisons from Canadian grocer Loblaw, with a pay and benefits package of up to 6.1m, earlier this year.

"You'll have noticed that I'm not a local boy, although not quite as much an outsider as it might seem,'' he said.

"Despite my transatlantic twang, I am very much Irish, I was brought up on a farm across the Irish sea. The accent is the result of studying and working around the world, including my last job at Canada's largest retailer."

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So why, after a globe-trotting career, which had included stints in Hong Kong, Spain, Canada and Brazil, did he choose to set up home in Yorkshire?

Well, according to Mr Philips, the attractions were obvious. Morrisons is a "remarkable" company with 12 million customers who are growing in numbers every week, he said.

"We have a lovely home in York. I know it is not Bradford, but at least it is not Leeds."

Another key factor which persuaded him to head to the UK, it seems, is his relationship with Sir Ken Morrison, the former chairman. The first meeting, he said, was like a papal blessing. "One of the first things I did on being appointed was meet Ken,'' he told the audience. "I flew overnight from Canada and I was really jet-lagged. I came in with the chairman Sir Ian Gibson and there was a certain level of anxiety, because Sir Ken is a great retailer.

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"Ken asked me if I would like a cup of tea. And I said, 'Yes, I'll have my usual. I'll have a green tea'."

Sir Ian's reaction indicated that this was not a beverage that was frequently drunk in the Morrison household.

Mr Philips was undaunted.

"I went there again two weeks later. I flew back, and again, I was jet-lagged and he met me at the door with a big tray of tea. It had raspberry and camomile tea... so Ken's been great. He's been very kind to say that we have lots of views in common. And I have been blessed to have him show me around many of our stores. I always learn from him, which is hardly a surprise.

"For if those in the business world drew up a list of the world's best retailers, Ken would be right up at the top. His drive and vision and understanding of the consumer enabled him to build Morrisons from a single shop into a national business with more than 430 stores and 135,000 employees. So I am fully aware that I have big shoes to fill."

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It's a smart idea to stay on the right side of Sir Ken. Sir Ken attacked former Morrisons' CEO Mr Bolland at the group's AGM in June after the latter quit Morrisons to take on the top job at Marks & Spencer. Sir Ken said he was "not too disappointed" about the departure of Mr Bolland, who was "patently not a retailer".

Mr Bolland later laughed the criticism off, saying: "I took it with a big smile. Sir Ken has been very complimentary to me. He said I did a sterling job."

Sir Ken, 78, is still Morrisons' life president and it's difficult to imagine him becoming mealy-mouthed with age. So Mr Philips will have been pleased that their relationship has got off to such a good start.

It was also a wise diplomatic move on Mr Philips' part to address Bradford Chamber's annual dinner at the first opportunity,

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His plan to act as a champion of Bradford will have been music to the audience's ears.

But – and there's no point in hiding this fact – Mr Philips will be judged by City analysts on how effectively he expands Morrisons' reach into areas far removed from its Yorkshire heartland.

With around seven million UK households outside the catchment area of a Morrisons' store, there is plenty of room for growth.

Morrisons may be the UK's fourth biggest retailer, but it has lagged behind its rivals in terms of expanding beyond traditional grocery retailing since the acquisition of Safeway six years ago. In September, Mr Philips promised to branch out into convenience stores with a trial of three smaller shops, to test internet shopping, and use space more effectively by simplifying some ranges.

Perhaps the virtues of a Bradford market stall can still be employed by a retail giant.