Morrisons Shifts Gears: Night Work Reduction Sparks Efficiency Drive

Morrisons, the Bradford-based supermarket chain, is implementing significant changes to its operational structure. The company is reducing night shifts and transitioning to a combination of twilight and early shifts, aiming to enhance business efficiency and productivity.

This shift in operations is part of an ambitious turnaround project initiated by Rami Baitieh, Morrisons' new chief executive. The plan is designed to restore the grocer's market position after it was surpassed by Aldi in market share in 2022. Morrisons, founded in 1899, has a rich history in the UK retail sector and has been adapting to changing market dynamics over the years.

The company's executives assert that this change is not primarily about cost-cutting. Instead, they claim the new shift structure allows for improved handovers between shifts, leading to increased productivity and fewer errors. However, the decision has met with mixed reactions from employees.

Some workers have expressed concerns about potential pay reductions and disruptions to their work-life balance. Night staff at Morrisons currently receive an additional £2.35 per hour. To address these concerns, the company has implemented a transitional pay structure for affected employees. Those moving from night to twilight shifts will continue to receive night pay for several months, followed by a "half night pay premium" for an additional two months.

A Morrisons spokesperson described the shift change as "a progressive step, delivering better store replenishment, a better customer experience, and better continuity in the store." The company reports positive outcomes in stores where the new system has been implemented, including improved product availability, reduced overstock, increased productivity, greater customer satisfaction, and less waste.

It's worth noting that Morrisons has a history of innovative practices in the UK supermarket sector. For instance, it was the first UK supermarket to introduce paper bags for fruit and vegetables in 2018, demonstrating its commitment to sustainability. The company has also set an ambitious goal to achieve net zero carbon emissions by 2040.

In addition to the shift changes, Morrisons is reevaluating its use of self-checkouts. Rami Baitieh acknowledged that the company "went a bit too far" with the rollout of self-checkouts and plans to reduce their presence in some stores. This decision comes amid a broader consumer backlash against unmanned tills, particularly for customers with full shopping carts.

Despite these operational changes, Morrisons reported positive financial results in June 2024. Total sales excluding fuel rose 3.7% to £3.8 billion over the three months ending April 2024, with underlying profits excluding fuel up 16% to £321 million.

As Morrisons navigates these changes, it continues to leverage its unique strengths, such as its vertical integration model and ownership of food processing facilities. The company's "Market Street" concept, featuring fresh produce counters, remains a distinctive aspect of its stores, setting it apart in the competitive UK grocery market.

"In the stores where it has been introduced, we are seeing better availability, reduced overstock, increased productivity, greater customer satisfaction and less waste. We recognise that fewer night shifts does not suit absolutely everyone, but the move is widely popular with our colleagues."

As Morrisons continues its transformation, the company faces the challenge of balancing operational efficiency with employee satisfaction and customer preferences. The success of these changes will likely play a crucial role in determining the grocer's future position in the UK retail landscape.