IGD convention 2014
Andrew Higginson
Former Tesco, Poundland and Laura Ashley executive Andrew Higginson took to the stage for one of the most candid presentations of the day.
Higginson, who will take over as chairman of Morrisons in October, held nothing back as he discussed the state of the industry.
Higginson: “We live in quite extraordinary times and we’ve seen disruption of reputations if nothing else. Tesco – with 30% [of the market] share – has been a weak player in the last couple of years and I think that has made the industry weaker. Competition is really good for you. It doesn’t feel like that as the time, but it makes you a better business.
“Having the market leader off form at the moment isn’t great for the whole industry.
“Digital is the new weather; it always used to be weather that was the reason why your sales were never any good. We all know the internet has had a massive effect, whether that’s new channels, better informed consumers or better informed competitors.
“I don’t think it is fair for you to blame that on your performance today. Let’s be honest, Aldi, Lidl and Poundland don’t trade online and they seem to be doing ok.
“So, I think digital is very important and central, but as an observer looking in, to use it as an excuse for a poor trade seems a pretty thin way of explaining things.
“Aldi and Lidl really haven’t got any cheaper; it is more that the supermarkets have got more expensive.
“The supermarkets – in a way – haven’t focussed on customers, or Aldi or Lidl or Poundland. As an observer looking in, the marketing dialogue of the past few years has astonished me. They are shouting at how we are cheaper than you, it’s the big four talking to each other not to the customers.
“Customers know the big four haven’t been cheap – and as they do in retail – they vote with their feet … if they’re not shopping with you, that’s a pretty clear message.”