Bernard Ginns: Yorkshire needs big businesses like Morrisons

City investors certainly thought so when industry figures suggested that the Bradford grocer’s fortunes might be taking a turn for the better.

Even Clive Black, analyst at Shore Capital and a persistent critic of Morrisons, said things might be looking up at Hilmore House.

He told me: “Morrisons could materially be turning a corner”.

“While it’s still losing market share the sense is that Morrisons’ rate of decline has improved.

“If that’s the case, the price cuts Morrisons put through in March might be starting to filter into the consumer psyche.

“One swallow does not a summer make but it could be a significant turning point.”

Research from Kantar Worldpanel showed that Morrisons’ share of the grocery market fell by 1.9 per cent to 11 per cent in the 12 weeks to August 17.

Figures for the last four weeks of that period however showed a 2.4 per cent improvement in Morrisons’ share of the total till roll.

Over in Leeds, close rival Asda is storming ahead. The American-owned retail giant boosted market share by 1.2 per cent, according to Kantar.

Asda, led by chief executive Andy Clarke, announced like-for-like sales growth of 0.5 per cent for the 10 weeks to June 30 earlier this month.

In a sector where ‘flat’ is the new ‘growth’ that represents soaraway success.

Mr Black commented: “Asda has been the best performing of the Big Four supermarkets for the last year now.

“Asda identified the suspicion of the consumer of how the Big Four were playing the recession some time ago, simplified its offer, cut its prices and has reaped the benefits.

“Asda has probably seen the least outflow to Aldi and Lidl and is growing faster than the other three.”

So, back to Morrisons, where chief executive Dalton Philips will be preparing for the arrival of new chairman elect Andy Higginson, who starts work next month.

Is the turnaround working? I certainly hope so, in the sense that Yorkshire needs FTSE 100 businesses like Morrisons; it is good for the region to have big head offices based here and not in London.

Roger Owen, the former long-serving property director whose interview with me back in May made headlines across Britain, described the group as “a supertanker heading towards an iceberg”.

To continue the metaphor, it takes a long time to turn around a supertanker.

Let’s hope Morrisons can do it before that iceberg gets too close.

* Yorkshire’s other FTSE 100 company, Persimmon, features in today’s lead story about the planning system.

Jeff Fairburn, chief executive, is right when he warns that unless we can resolve issues in the system Britain will fail to build enough homes for future generations to live in.

He is right too that the lack of supply is to blame for pumping up dangerous bubbles in residential property prices.

He recognises that 20121’s National Planning Policy Framework has ushered in some positive changes. But more progress is needed, particularly at town hall level.

Tim Waring, director at planning consultancy Quod, said the framework has raised tensions between councils and housebuilders.

To make matters worse, some councils have been in “denial” about the change in policy and their duty to provide sufficient homes for their populations.

Mr Waring said both Harrogate and Kirklees councils have had to abandon local plans because they failed to include enough housing.

He believes a national debate is needed about whether to continue with “archaic” green belt policies.

Housing is too important to be left to politicians.