Troubled supermarket Morrisons is reported to be considering selling its distribution centre in Kent.
The site in Kemsley, near Sittingbourne, is among four which the chain is said to be planning to cash in on as part of a drive to appease investors in the face of declining sales.
In March, the company announced proposals to sell £500million of its £9bn property estate after posting pre-tax losses of £176m in the year to February, with sales down 2.8%.
Plans leaked to PropertyWeek.com say the business aims to sell four sites worth £223m, which are said to include the national distribution centre off the A249.
The supermarket would not confirm which sites are planned to be sold, but said an announcement would be made in the coming months.
“We intend to sell a small number of these sites, lease back the properties and reinvest the proceeds in other core areas of our business to the benefit of our customers, colleagues and shareholders…" - Morrisons spokesman
The sold land would then be immediately leased back to the chain, thus not affecting its operations but generating a cash influx.
Sell it to who, Tossco?:lol::lol:
They all do that. They’ll bounce back now the up stroke is here.
Quite intresting as both morrisons and tesco have both posted poor financial redults the last few years although tedcos nowhere near as much as morrisons.
is it a case we are turning against the big supermarkets and shoping more with indipendant retailers or something else?
I dont think morfisons offer online shopping and home delivery could that be part of the problem?
Dont think people are using small independent shop, more the likes of Aldi, Lidl, Netto. Plus all firms say that they are struggling when they dont hit there over-inflated profit targets. Still making money ,just not as much as they thought they could fleece us out of.
True i guess tesco still well in the black just nowhere near as much as a few years back.
They have opened a lidil near me and go in the car park therrs plenty of new mercs range rovrrd etc in there guess more and more of us are shopping round.
dowahdiddyman:
Dont think people are using small independent shop, more the likes of Aldi, Lidl, Netto. Plus all firms say that they are struggling when they dont hit there over-inflated profit targets. Still making money ,just not as much as they thought they could fleece us out of.
This is true.
The lower end shops like Aldi, Home Bargains, Poundland et al always do well when ‘times are hard’ but the likes of Harrods and the like never brag about what they do or don’t make.
The amount of profit is more important than making profit (if that makes sense?) because they don’t think they have done well if they don’t exceed what profit was made last time hence the ‘need’ to always cut costs (usually at the employees expense) and charge (rip off) their customers by charging excessive prices.
Greed eventually becomes their achilles heel.
It’s not the prices in the stores - it’s the staff quality. 
Winseer:
It’s not the prices in the stores - it’s the staff quality.
This is also true!
But who would make an effort if they are being paid £2.98 (apprentice) or £5 something an hour as a Saturday (school kid) worker?
Glad I’ve only got a few years left to be honest.
The reason Harrods don’t publicise their performance figures has nothing to do with business ethics etc - it is simply because Harrods is a private limited company, while Tesco etc are public limited companies.
Harry Monk:
Troubled supermarket Morrisons is reported to be considering selling its distribution centre in Kent.
The site in Kemsley, near Sittingbourne, is among four which the chain is said to be planning to cash in on as part of a drive to appease investors in the face of declining sales.
In March, the company announced proposals to sell £500million of its £9bn property estate after posting pre-tax losses of £176m in the year to February, with sales down 2.8%.
Plans leaked to PropertyWeek.com say the business aims to sell four sites worth £223m, which are said to include the national distribution centre off the A249.
The supermarket would not confirm which sites are planned to be sold, but said an announcement would be made in the coming months.
“We intend to sell a small number of these sites, lease back the properties and reinvest the proceeds in other core areas of our business to the benefit of our customers, colleagues and shareholders…" - Morrisons spokesman
The sold land would then be immediately leased back to the chain, thus not affecting its operations but generating a cash influx.
I know around Midlands… they building a lot of shops recently … no wonder.
Looks like a simple sell and lease deal, loads of places to do it.
Though to be fair, a few inaccuracies in the article so I’m not paying too much attention to it! There’s a part in there stating that ADR Network run the sure, if they can’t get basics like that correct then the rest can’t be too much to worry about.
Morrisons shot themselves in the foot by trying to become too big, too quickly.
I was involved with the Safeway ‘merger’ (takeover)
The amount that cost was ridiculous. Added to the fact that they threw out 99.9% of Safeway’s policies and procedures, which had been created after many years and a great deal of research and investment.
Stupid things like ripping out the automated ordering system, which basically ordered a case of beans, every time 24 were scanned through the tills (much more to it than that, but essentially that’s what it did) only to replace that with telephone book sized ordering pads which were completed manually, then inputted onto a PC by a squad of staff.
Ken Morrison was so vain that he even spent a fortune converting stores that the Competition Commision had insisted that he divest (sell) just so that he could have his name over the door.
Despite his reputation for being ‘careful’ with money (downright stingy) money was no object with those conversions. A standard set of equipment was sent into each store, and if that store didn’t have, say, a pie shop, all the pie shop equipment went in the bin.
Tonnes of fresh food went in the bin without ever seeing the light of day.
Folk were shipped all over the country, rather than working in their home region, fuel, expense and hotel claims were absolutely immense.
And at the end of it all, they were skint and expected the staff to work ridiculous hours to foot the bill, as there was no money in the pot to recruit more staff.
Hateful company to work for. I’ll be glad when they go bust.
Roymondo:
The reason Harrods don’t publicise their performance figures has nothing to do with business ethics etc - it is simply because Harrods is a private limited company, while Tesco etc are public limited companies.
Whatever.
fredthered:
dowahdiddyman:
Dont think people are using small independent shop, more the likes of Aldi, Lidl, Netto. Plus all firms say that they are struggling when they dont hit there over-inflated profit targets. Still making money ,just not as much as they thought they could fleece us out of.This is true.
The lower end shops like Aldi, Home Bargains, Poundland et al always do well when ‘times are hard’ but the likes of Harrods and the like never brag about what they do or don’t make.
The amount of profit is more important than making profit (if that makes sense?) because they don’t think they have done well if they don’t exceed what profit was made last time hence the ‘need’ to always cut costs (usually at the employees expense) and charge (rip off) their customers by charging excessive prices.
Greed eventually becomes their achilles heel.
As you mention Harrods, was in London last week,(For a garden party at Buck House, no honestly!), and me and her decided to go into Harrods, with strict instructions to keep your hands in your pockets.
Came out after half an hour laughing my ■■■■■■■ socks off.
Can you believe this, cherries, yes those little red things, £120.00 per kilo! And I complained at Morrisons that their’s are £6.00 a kilo.
Pomegranites, £8.00 each!
There was a wristwatch there, cost?, £235,000.00 ■■■■■■■ quid!
And there’s actually people prepared to pay these prices, they ain’t ■■■■■■■ truckers though!
As you mention Harrods, was in London last week,(For a garden party at Buck House, no honestly!), and me and her decided to go into Harrods, with strict instructions to keep your hands in your pockets.
Came out after half an hour laughing my [zb] socks off.
Can you believe this, cherries, yes those little red things, £120.00 per kilo! And I complained at Morrisons that their’s are £6.00 a kilo.
Pomegranites, £8.00 each!
There was a wristwatch there, cost?, £235,000.00 [zb] quid!
And there’s actually people prepared to pay these prices, they ain’t [zb] truckers though!
people who shop in harrods and the like in london, mostly, are beyond our comprehension to understand.
they do not think about money, bills, expenses, cost of living ect. They think no-more of what things cost than they do inhaling and exhaling. they deal in amounts of money that would make you cringe and the worlds biggest lie is how we all should keep our noses clean and work hard and live the dream, it was made up by somebody with a lot of dosh who did,nt want to lose it.
fredthered:
Roymondo:
The reason Harrods don’t publicise their performance figures has nothing to do with business ethics etc - it is simply because Harrods is a private limited company, while Tesco etc are public limited companies.Whatever.
Maybe you don’t understand the concept.
It doesn’t surprise me to hear Morrisons are struggling a bit, i’ve tried shopping at my local one and always found the range & prices left a lot to be desired - even since their recent discounting effort. Some of the smaller ones in particular that they took over from Safeway are horrid places to shop, too much going on in too smaller space & dodgy store layouts. Their new convenience stores fare little better in my experience.
I heard a bit of chat about a Morrissons DC opening up near Farnborough, anyone know if that’s correct??
I don’t think they are in “financial trouble”, but they are losing out in a very competitive market and need to get their act together.
They are waaaay behind the competition with online shopping having only recently entered the game through Ocado. They also need to step up their convenience shop game too.
Sainsbury’s and Waitrose are doing well being at one end of the market, Lidl and Aldi doing the same at the other end. The big squeeze is in the middle.
Anyway. I heard that Sir Ken had a big old rant at the shareholder’s meeting 
independent.co.uk/news/busin … 97648.html