LISTENING to customers, staff and other stakeholders is at the heart of Morrisons’ recovery plans, shareholders were told at the company’s 76th annual general meeting.

David Potts, chief executive, said the result was a three-stage revival plan based on fixing previous problems and rebuilding sales and profits before growing the business.

For the past two quarters Morrisons has seen small rises in like-for-like sales following 16 quarters of decline in a cut-throat marketplace.

Mr Potts said: “Listening has provided us with a plan to rebuild the company, stabilise sales and reduce costs.

“It’s early days but we’re optimistic that steady progress is being made and customers are starting to notice.”

He said Morrisons’ new senior team had the passion and energy to provide a better way of running the business.

“It’s a team with the experience and knowledge but one which listens to customers and colleagues who tell us what they truly value about Morrisons.

“Listening and responding quickly is the heart of the Morrisons revival and the improvements made in the past year have been made and informed by listening.

“We believe that as the offer and the customer shopping trip is improved, customers will come back.

“Customers have told us to be more competitive and have lower, more consistent prices. They want better customer service, shorter checkout queues, fewer gaps on the shelves, better quality fruit and veg in better condition, and fewer pricing errors.

“Suppliers want us to be easier to work with and achieve sustainable growth while shareholders told us to stabilise the business before we grow and ensure that growth is both sustainable and profitable.”

Mr Potts said he was not assuming that the UK retail sector would get any easier or that customer shopping habits would suddenly turn back the clock.

But he pledged to continue improving Morrisons’ customer experience and to listen and learn and do the right things.

Customer satisfaction scores were improving and phase two of the recovery plan would further improve their shopping experience, he said. Phase three would focus on boosting overall performance through becoming a broader business to create growth and improve shareholder value.

Morrisons’ life president Sir Ken Morrison, who two years ago lambasted the then top bosses as the company struggled, did not speak this year.

After the meeting at Morrisons’ Gain Lane head office Sir Ken, whose father founded the business as a Bradford market stall in 1899, said while the management needed to keep a close eye on maintaining stock levels in stores, they appeared to be on the right track.