Morrisons will continue to prosper in the current economic climate so long at it sticks to its founding principles.
This is the view of Sir Ken Morrison, who retired as chairman of the Bradford company in March after a career spanning 55 years, during which he led it to become Britain's fourth largest supermarket chain with 375 stores and 117,000 staff.
In his final chairman's statement to shareholders in the annual report and accounts, Sir Ken says: "In my last statement as chairman of Morrisons it gives me particular pleasure to be reporting record earnings and to see more customers than ever before are experiencing the freshness, quality and value that Morrisons has to offer.
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"I am sure the new management team will spare no effort in further extending your company's run of success."
Sir Ken says Morrisons fought hard to avoid passing on the rising costs of commodities such as wheat and dairy products.
The recent Competition Commission report into the grocery sector contained nothing to make Morrisons change the way it does business.
The proposed competition test over the siting of supermarkets in Britain's high street would offer Morrisons opportunities in several parts of the country where the firm was under represented.
Looking back on his career, Sir Ken says it has been both demanding and fulfilling but always enjoyable.
He urges his successors, new chairman Sir Ian Gibson and chief executive Mark Bolland, to achieve success by assuming a leading business position. He also reminded them that, although Morrisons was a large and sophisticated company, it carried out the simple task. "We buy things and sell them," he said.
Sir Ken said: "Our task is to ensure that we always please the customer with the quality of what we offer for sale and at all times we ensure outstanding value for money.
"This can only be achieved by strict control of all costs and remaining in touch with all aspects of what is a fascinating industry.
"I have never forgotten that retailers are always on duty as we are in dynamic business, seven days a week, 52 weeks a year."
Paying tribute to Sir Ken, the board says his bold and innovative leadership had transformed the business from a small family grocery.
Chief executive Mark Bolland says Morrisons' three year strategy is to position the business as the UK's "food specialist for everyone."
He says: "As a food specialist we are differentiating ourselves from our large competitors, all of whom are seeking to expand their non-food credentials."
Morrisons was strong and planned investment over the next two years should be paid for from existing funds.
In the year to February 3, Morrisons increased pre-tax profits by 66 per cent, to £612m, compared with £369m the previous year.
Group turnover rose by six per cent from £12.5bn to £13bn. Its success means that the staff profit share pool will pay out £30m.
Posted by: Mr Sensible, Bingley on 1:09pm Thu 8 May 08
Congratulation to Sir Ken in all he has done for Bradford and his workforce (I am not one). The best ever decision he ever made was in noot getting involved with Bradford City.
Congratulation to Sir Ken in all he has done for Bradford and his workforce (I am not one). The best ever decision he ever made was in noot getting involved with Bradford City.
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