Inside Morrisons' Turnaround: Rami Baitiéh on Vertical Integration and Retail Discipline

Rami Baitiéh is leading a focused transformation at Morrisons.

But once underway, his message was clear: Morrisons is in the middle of a focused and disciplined turnaround.

Baitiéh outlined how the British grocer is leveraging its unique vertically integrated model, cultural reset and operational rigor to restore competitiveness and long term growth.

Founded 125 years ago, Morrisons operates across England, Scotland and Wales, as well as Gibraltar and the Channel Islands. With more than 100,000 colleagues, the company serves millions of customers each week and remains one of the UK's most distinctive supermarket operators.

What Makes Morrisons Structurally Different

What sets Morrisons apart from many grocery competitors is its vertically integrated structure. Unlike traditional retailers that primarily buy finished goods for resale, Morrisons produces a significant portion of what it sells.

Baitiéh, who previously spent 25 years at Carrefour, has highlighted this contrast. In most supermarket models, value creation begins with procurement. At Morrisons, it begins much earlier in the supply chain.

Why Vertical Integration Is a Strategic Advantage

Morrisons works with approximately 3,000 farmers and operates its own food production facilities. The business includes fishmongers and even fishing boats. If separated from the retail arm, its manufacturing operations alone would rank as the second largest food production organization in the United Kingdom.

This vertically integrated value chain provides greater control over quality, sourcing and cost management. It also strengthens resilience during periods of supply chain disruption and inflationary pressure.

In addition to supplying its own stores, Morrisons' production arm also manufactures for external clients, creating additional scale and operational leverage.

Leadership Legacy and Retail Foundations

Morrisons was founded by Sir Ken Morrison, who transformed the company from market trading roots into a national supermarket operator. Over time, the retailer expanded into convenience and online channels.

Baitiéh succeeded David Potts, who led the company for a decade following a distinguished career at Tesco.

The current Chairman, Sir Terry Leahy, is widely credited with shaping modern British grocery retail through Tesco's expansion strategy.

This leadership lineage reinforces Morrisons' deep retail expertise and long term strategic focus.

Culture and Process at the Core of the Turnaround

At the heart of the turnaround is cultural alignment and operational discipline.

With a workforce exceeding 100,000 colleagues, execution consistency is essential. The strategy centers on retail fundamentals: strong availability, product freshness, competitive pricing and customer trust.

By tightening processes and reinforcing accountability across stores and supply chain operations, Morrisons aims to improve performance at scale while maintaining its distinct identity.

Using Technology to Strengthen the Value Chain

While heritage and supply chain ownership are key strengths, technology plays an increasingly important role in the transformation.

Digital tools enhance forecasting, inventory management and online fulfillment. Because Morrisons controls production as well as retail, data can flow more effectively across the value chain, supporting better margin management and waste reduction.

This integration of farming, manufacturing and store level data creates a structural advantage that is difficult for asset light competitors to replicate.

What Retail Leaders Can Learn

Morrisons' turnaround highlights the power of structural differentiation.

Owning more of the value chain enables greater control, stronger quality assurance and improved margin resilience. However, vertical integration alone is not enough. It must be supported by disciplined processes, cultural clarity and effective leadership.

For retail executives facing margin pressure and competitive intensity, Morrisons demonstrates that sustainable advantage can come from operational depth rather than short term tactics.

In a market defined by volatility, control and consistency may prove to be the most valuable assets of all.