Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy (2024)

Many retailers boosted wages after living wage/minimum wage changes in spring.

Figures show German discount brands Aldi and Lidl top the list of major UK supermarkets when it comes to staff hourly pay - after Lidl introduced its third pay increase of the year in May to match its closest rival.

Meanwhile, Morrisons is at the bottom of the pack for staff pay outside London, with hourly wages starting at the National Living Wage (£11.44).

How do other companies compare when it comes to pay and benefits? We've taken a look...

Aldi

Pay: £12.40 an hour outside London and £13.65 inside the M25

Aldi announced in March it was bringing in its second pay rise of the year as part of its aim to be the best-paying UK supermarket.

From 1 June, hourly pay rose from £12 an hour to £12.40 outside the M25 and £13.55 to £13.65 in London.

Aldi is one of the only supermarkets to give staff paid breaks. It also offers perks such as discounted gym membership and cinema tickets, and financial planning tools. However, there are no cheaper meals, staff discounts or bonus schemes.

Asda

Pay:£12.04 an hour outside London and £13.21 inside the M25

As of 1 July, hourly wages for Asda supermarket staff rose to £12.04 per hour from £11.11, with rates for London staff also going up to £13.21.

As part of the July changes, Asda brought in the option for free later-life care or mortgage advice. The company also offers a pension and a free remote GP service.

Co-op

Pay:£12 an hour outside London and £13.15 inside the M25

Co-op boosted its minimum hourly wage for customer team members from £10.90 to £12 nationally as the national living wage rose to £11.44 in April.

For staff inside the M25, rates rose from £12.25 to £13.15.

The perks are better than some. Workers can get 30% off Co-op branded products in its food stores as well as 10% off other brands. Other benefits include a cycle to work scheme, childcare vouchers and discounts on its other services.

Iceland

Pay:£11.50 an hour outside London and £12.65 inside the M25

Iceland says it pays £11.50 for staff aged 21 and over - 6p above the minimum wage. Employees in London receive £12.65 per hour.

Staff are also offered a 15% in-store discount, which was raised from 10% in 2022 to help with the cost of living.

The firm says it offers other perks such as a healthcare scheme and Christmas vouchers.

Lidl

Pay:£12.40 an hour outside London and £13.65 inside the M25

From June, Lidl matched its rival Aldi by raising its hourly wage to £12.40 for workers outside the M25 and £13.55 for those inside.

Lidl also offers its staff a 10% discount card from the first working day, as well as other perks such as dental insurance and fertility leave.

M&S:

Pay:£12 an hour outside London and £13.15 inside the M25

Marks and Spencer's hourly rate for store assistants was hiked from £10.90 to £12 for staff outside London and from £12.05 to £13.15 for London workers from April.

The grocer also offers a 20% staff discount after the probation period as well as discretionary bonus schemes and a free virtual GP service.

Morrisons

Pay:£11.44 an hour outside London and £12.29 inside the M25

Along with many other retailers, Morrisons increased the hourly wage for staff outside the M25 in line with the national living wage of £11.44 in April.

Employees in London receive an 85p supplement.

While it's not the most competitive for hourly pay, Morrisons offers perks including staff discounted meals, a 15% in-store discount and life assurance scheme.

Sainsbury’s

Pay:£12 an hour outside London and £13.15 inside the M25

Sainsbury's hourly rate for workers outside London rose to £12 from March, and £13.15 for staff inside the M25.

The company also offers a 10% discount card for staff to use at Sainsbury's, Argos and Habitat, as well as a range of benefits including season ticket loans and long service rewards.

Tesco

Pay:£12.02 an hour outside London and £13.15 inside the M25

Since April, Tesco staff have been paid £12.02 an hour nationally - up from £11.02 - while London workers get £13.15 an hour.

The supermarket giant also provides a 10% in-store discount, discounted glasses, health checks and insurance, and free 24/7 access to a virtual GP.

Staff get their pay boosted by 10% on a Sunday if they joined the company before 24 July 2022.

Waitrose

Pay:£11.55 an hour outside London and £12.89 inside the M25

Waitrose store staff receive £11.55 an hour nationally, while workers inside the M25 get at least £12.89.

Staff can also get access to up to 25% off at Waitrose's partner retailer John Lewis as well as 20% in Waitrose shops.

JLP (the John Lewis Partnership) gives staff a bonus as an annual share-out of profit determined by the firm's performance. In 2021-22 the bonus was 3% of pay; however, it has not paid the bonus for the past two years.

Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy (2024)

FAQs

Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy? ›

"Morrisons went a bit too far with the self-checkout,” Baitiéh admitted in an interview - saying that he believed the rise of self-checkouts had also driven more shoplifting. The installation of the machines “had the advantage of driving some productivity,” he told the Telegraph.

Is Morrisons supermarket in trouble? ›

It was the second consecutive year in which Morrisons lost more than £1bn, after reporting a loss before tax of £1.5bn in 2022. The supermarket chain has struggled to compete against the rapidly expanding discounters Aldi and Lidl and a resurgent Tesco and Sainsbury's.

Has Morrisons been taken over? ›

CD&R acquire Morrisons

In October, Clayton, Dubilier & Rice acquired the issued share capital of Morrisons, taking the company private and ending its 54 year listing on the London Stock Exchange.

Is Morrisons making money? ›

Latest results for the 52 weeks to the end of October 2023 reveal the company posted a £1.1billion loss on revenue of £18billion, according to filings at Companies House for the chain's parent company Market Topco. That compares with a loss of £1.5billion in the 65 weeks to the end of October 2022.

Is Morrisons financially stable? ›

Morrisons has faced huge financial pressure since it was bought by private equity firm Clayton, Dubilier & Rice (CD&R) for £10bn in 2021. The deal took the company off the London Stock Exchange for the first time since 1967, saddling the business with billions of pounds in debt.

Is Morrisons owned by Walmart? ›

The new owner of Morrisons is Clayton, Dubilier & Rice (CD&R), a US private equity firm. CD&R's bid for the retailer has been fronted by Sir Terry Leahy, former chief executive of Tesco.

Which American company bought Morrisons? ›

// The grocer was acquired by CD&R in October 2021 for £7 billion in exchange for private equity. Morrisons has racked up £1.5 billion of losses, a year after being bought by US private equity firm CD&R.

Are Morrisons supermarkets closing down? ›

Morrisons has a strong pipeline of more than 10 new stores planned within the next two to three years, despite reports of closures, it has been claimed. News emerged this week of three planned closures by the supermarket – in Faversham, Bolton and Preston.

Does Morrisons support Israel or Palestine? ›

Morrisons does not source any goods from the Occupied Palestinian Territories (including the West Bank). We source produce from the state of Israel and take care to ensure the integrity of origin declarations.

Why is Morrisons in debt? ›

Private-equity owned supermarket Morrisons is aiming to spend £1 billion buying back its debt, after a big windfall from the sale of its petrol forecouts. The supermarket, owned by US firm Clayton, Dubilier & Rice, had net debts of £8.5bn at the end of October last year, according to its most recent financial report.

Does Morrisons have a good reputation? ›

In total, 36% of UK grocery store customers say they like Morrisons.

What did Morrisons used to be called? ›

The British Safeway was founded in 1962 by the American Safeway Inc., before being sold to Argyll Foods in 1987. It was later listed on the London Stock Exchange. It was purchased by Morrisons in March 2004. Most of its 479 shops were rebranded as Morrisons, with others being sold.

Is Morrisons supermarket in debt? ›

The supermarket, owned by US firm Clayton, Dubilier & Rice, had net debts of £8.5bn at the end of October last year, according to its most recent financial report. The debt pile has more than doubled since CD&R bought the business in 2021, and rising interest rates since that deal closed have made debt more costly.

How is Morrisons supermarket performing? ›

Morrisons has continued its improved performance, as it reported a 4.1% increase in group like-for-like sales in the second quarter. The retailer said total sales excluding fuel were up 3.7% to £3.8bn for the 13 weeks to 28 April.

Who owns Morrisons in 2024? ›

Morrisons, owned by U.S. private equity firm Clayton, Dubilier & Rice (CD&R) since 2021, said underlying earnings, excluding its fuel business, increased 16% to 321 million pounds ($408 million) in the six months to April 28.

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