So
I went to a Morrisons supermarket and bought a bottle of their own
brand South African smooth
and fruity Chardonnay.
It cost £4.99. So what?
Only
this. A couple of weeks ago, Morrisons caused a minor panic in the
world of food and drink retailing by announcing a new and aggressive
price-cutting strategy: so aggressive, in fact, that their profits
would halve
over the next few years, as the price war took effect. This in turn
knocked £2 billion off the value of all listed UK supermarkets
(Morrisons included), as the announcement sank in: the race for the
mainstream, it now appeared, would be straight to the bottom.
Why
are Morrisons putting themselves in this position? Because they've
concluded that the supercheap German invaders - Lidl and Aldi,
basically - have won the battle for Everyman's wallet, and that there
is no longer any point in attempting the we-do-everything rationale
which has driven supermarket growth over the last twenty years.
Rationalised product lines, great value, stark simplicity, no
tiresome coffee machines - that's the plan, apparently, and the
price-wise British are going to break down Morrisons' doors in their
eagerness to get at the goods. Tesco, Asda and Sainsbury will look on
in horror, and, to a lesser extent, given their higher-end clientéle,
Waitrose - leaving Morrisons supreme.
Thing
is, do I believe them? After all, Morrisons have always been a funny
kind of enterprise, not least because Ken Morrison, the man who made
the chain huge in the north of England before taking them south at
the turn of the century, insisted on having a dedicated pie counter
in every store: a typically belligerent Yorkshire antirefinement
which made me want to sneer out loud every time I read about it. Here
in
the south they were unknown until suddenly they were everywhere,
often in absolutely huge supermarkets which they'd bought off
Safeway. The old northern Morrisons was a byword for good business
practice and strong growth; the new, national, Morrisons became known
for a shortage of interesting product lines, a failure to invest in
their IT systems, scant online presence, and a general sense of
having overreached themselves. Reinvention is going to be hard.
And
it matters because of the drink. Wine = supermarket wine, most of the
time, for most of us. And the big supermarkets, with their
ungovernably vast ranges and their insanity-provoking pricing
philosophies, have used the fantasy of limitless choice as a way to
flog us a load of indifferent wines at tiresomely inflated prices.
But will Morrisons' bold new plan compel the others to ditch
senseless variety and two-faced pricing, in favour of simplicity and
clarity, just like you get in Lidl?
To
say nothing of quality.
When Morrisons made their news, everyone parenthetically raved about
the great value of Lidl/Aldi produce. What no-one seemed to be saying
was that a lot of Lidl's stuff is not just cheap, but good. Yes, they
have a weakness for bin-ends of frogman's flippers/assorted
fusewire/lengths of plastic sheeting; and as many have said, you can
get some great stuff there but you can't do your week's shop. But
their booze is always worth checking out - genuinely Continental in
its one-size-fits-all approach. Can a bunch of chippy Northerners do
the same?
Well,
just to show solidarity, I went straight to my nearest Morrisons,
pleasant enough store, fairly busy, helpful staff, Tescoesque punters
milling around, slightly undecided wine section wrestling for
floorspace with the discount ciders and jereboams of knock-off vodka.
I got my Chardonnay (rashly adding a sub-£5 Chianti and a smarter
Fitou at £5.99), took it home and drank it. It was okay, more
dentist's rinse than Chardonnay, but served headache-cold, it passed
the time. Thing is, Lidl would have had it on offer at £3.99, maybe
even less. And since it's all about the price point, we can only
conclude that Morrisons are at least 20% off the mark. All right,
it's far too early to tell; a return trip in ten months' time ought
to reveal a different store altogether.
If,
by then, it is
a
different store altogether, can we hail the start of a new realism in
cheap wine? Will Morrisons live up to their thrilling promise? Will
they stop Tesco in their tracks? I'd like to think so; but at the
same time, I have doubts as big as an Aldi dogfood multipack, that
such a thing will actually happen in my lifetime.
CJ