Blackfriar: Morrisons and Asda change tactics for the better

The main thing they learned from the last economic crash is not to become too greedy. The big four took their eye off the ball in the aftermath of the financial crisis of 2008, raising prices in sync and opening the doors to the discounters, Aldi and Lidl.

This time round, they are investing in price cuts but none are declaring all out war.

Meanwhile Morrisons and Asda are taking a far more holistic approach to maintaining their market share.

This week Morrisons is touring Yorkshire to find new local suppliers - something that customers appreciate in such a proud county.

The Bradford-based grocer is on the hunt for local suppliers after research found that Yorkshire customers like to support their local communities.

There is a strong loyalty amongst Yorkshire shoppers for Morrisons, which is rekindling its former glories under chief executive David Potts.

People want to see the supermarket do well and support local farmers and producers at the same time. It is part of a wider remit to reduce food imports at a time when the collapse in sterling has hit the price of foreign imports.

In addition to supporting local enterprises, Morrisons is championing some great new products in its new The Best premium line, where sales are going through the roof. Two good examples are their new Spicy and Aromatic Curry Crisps and Cotton Candy grapes. It’s quality at low prices - just what the late Sir Ken Morrison championed.

Meanwhile Asda is to improve its pay to store colleagues on the understanding that they work more flexible hours to meet customer demand.

Asda is to increase store workers pay to £8.50 an hour from this October, £1 higher than the Government’s National Living Wage.

All of its 135,000 store colleagues will be offered the award as part of a new contract.

The Leeds-based group said the new contract offers one of the highest rates of hourly pay within the supermarket sector.

However staff will have to agree to more flexible working patterns to ensure they are there to meet customers’ needs. Colleagues could be asked to work in different parts of the store, or work different days or hours depending on when customers shop.

Staff will have to agree to work Bank Holidays if required by their store or take them as annual leave. They will be awarded 28 days annual leave, including Bank Holidays. All breaks will also be unpaid.

Asda said 95 per cent of current colleagues will be better off if they choose to move to the new contract – some by over £1,000 a year.

Staff who do not wish to move to the new contract can remain on their current conditions and all Asda colleagues will move to the increased National Living Wage in April regardless of whether they opt for the new deal in October.

The move has received Union approval.

The GMB’s general secretary Tim Roache said; “These new flexible contracts will help to ensure job security, ensure those accepting them are on the same terms and - best of all – ensure that people will earn more money as a result.

“The new contract offer involves quite a few changes, but as it’s voluntary, this allows colleagues to choose whatever suits their circumstances best.”

Gone are the days when store workers could expect and demand to get paid Bank Holidays.

It’s a state of affairs that many other sectors have already embraced. People still need to catch a train, go shopping, read the news, eat meals and visit attractions over Easter and the other Bank Holidays.

Asda is moving with the times, offering the carrot of a pay increase to £8.50 an hour rather than the stick of enforced working hours.