Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy (2024)

Many retailers boosted wages after living wage/minimum wage changes in spring.

Figures show German discount brands Aldi and Lidl top the list of major UK supermarkets when it comes to staff hourly pay - after Lidl introduced its third pay increase of the year in May to match its closest rival.

Meanwhile, Morrisons is at the bottom of the pack for staff pay outside London, with hourly wages starting at the National Living Wage (£11.44).

How do other companies compare when it comes to pay and benefits? We've taken a look...

Aldi

Pay: £12.40 an hour outside London and £13.65 inside the M25

Aldi announced in March it was bringing in its second pay rise of the year as part of its aim to be the best-paying UK supermarket.

From 1 June, hourly pay rose from £12 an hour to £12.40 outside the M25 and £13.55 to £13.65 in London.

Aldi is one of the only supermarkets to give staff paid breaks. It also offers perks such as discounted gym membership and cinema tickets, and financial planning tools. However, there are no cheaper meals, staff discounts or bonus schemes.

Asda

Pay:£12.04 an hour outside London and £13.21 inside the M25

As of 1 July, hourly wages for Asda supermarket staff rose to £12.04 per hour from £11.11, with rates for London staff also going up to £13.21.

As part of the July changes, Asda brought in the option for free later-life care or mortgage advice. The company also offers a pension and a free remote GP service.

Co-op

Pay:£12 an hour outside London and £13.15 inside the M25

Co-op boosted its minimum hourly wage for customer team members from £10.90 to £12 nationally as the national living wage rose to £11.44 in April.

For staff inside the M25, rates rose from £12.25 to £13.15.

The perks are better than some. Workers can get 30% off Co-op branded products in its food stores as well as 10% off other brands. Other benefits include a cycle to work scheme, childcare vouchers and discounts on its other services.

Iceland

Pay:£11.50 an hour outside London and £12.65 inside the M25

Iceland says it pays £11.50 for staff aged 21 and over - 6p above the minimum wage. Employees in London receive £12.65 per hour.

Staff are also offered a 15% in-store discount, which was raised from 10% in 2022 to help with the cost of living.

The firm says it offers other perks such as a healthcare scheme and Christmas vouchers.

Lidl

Pay:£12.40 an hour outside London and £13.65 inside the M25

From June, Lidl matched its rival Aldi by raising its hourly wage to £12.40 for workers outside the M25 and £13.55 for those inside.

Lidl also offers its staff a 10% discount card from the first working day, as well as other perks such as dental insurance and fertility leave.

M&S:

Pay:£12 an hour outside London and £13.15 inside the M25

Marks and Spencer's hourly rate for store assistants was hiked from £10.90 to £12 for staff outside London and from £12.05 to £13.15 for London workers from April.

The grocer also offers a 20% staff discount after the probation period as well as discretionary bonus schemes and a free virtual GP service.

Morrisons

Pay:£11.44 an hour outside London and £12.29 inside the M25

Along with many other retailers, Morrisons increased the hourly wage for staff outside the M25 in line with the national living wage of £11.44 in April.

Employees in London receive an 85p supplement.

While it's not the most competitive for hourly pay, Morrisons offers perks including staff discounted meals, a 15% in-store discount and life assurance scheme.

Sainsbury’s

Pay:£12 an hour outside London and £13.15 inside the M25

Sainsbury's hourly rate for workers outside London rose to £12 from March, and £13.15 for staff inside the M25.

The company also offers a 10% discount card for staff to use at Sainsbury's, Argos and Habitat, as well as a range of benefits including season ticket loans and long service rewards.

Tesco

Pay:£12.02 an hour outside London and £13.15 inside the M25

Since April, Tesco staff have been paid £12.02 an hour nationally - up from £11.02 - while London workers get £13.15 an hour.

The supermarket giant also provides a 10% in-store discount, discounted glasses, health checks and insurance, and free 24/7 access to a virtual GP.

Staff get their pay boosted by 10% on a Sunday if they joined the company before 24 July 2022.

Waitrose

Pay:£11.55 an hour outside London and £12.89 inside the M25

Waitrose store staff receive £11.55 an hour nationally, while workers inside the M25 get at least £12.89.

Staff can also get access to up to 25% off at Waitrose's partner retailer John Lewis as well as 20% in Waitrose shops.

JLP (the John Lewis Partnership) gives staff a bonus as an annual share-out of profit determined by the firm's performance. In 2021-22 the bonus was 3% of pay; however, it has not paid the bonus for the past two years.

Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy (2024)

FAQs

Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy? ›

Mr Baitiéh told The Telegraph: "Morrisons went a bit too far with the self-checkout. This had the advantage of driving some productivity. However, some shoppers dislike it, mainly when they have a full trolley." The executive also said self checkouts had driven more shoplifting.

What is happening to Morrisons Supermarket? ›

Back in 2021, private equity giant Clayton Dubilier & Rice (CD&R) paid £7bn to acquire Morrisons, with the deal finalised before the steep hike in interest rates. The deal has left the supermarket owing £400m of annual interest payments on £6.6bn of debt.

Is Morrisons making money? ›

Morrisons reported a drop in revenue during the 2023 financial year, from £18.7bn to £18.4bn, although much of that decline was down to lower fuel sales after global oil prices fell. The company said its underlying profit, stripping out debt costs and other “exceptional” items, was £970m.

Is Morrisons owned by Walmart? ›

The new owner of Morrisons is Clayton, Dubilier & Rice (CD&R), a US private equity firm. CD&R's bid for the retailer has been fronted by Sir Terry Leahy, former chief executive of Tesco.

Who owns Morrisons in 2024? ›

Morrisons, owned since 2021 by U.S. private equity group Clayton, Dubilier & Rice, said its core earnings, or underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6.5% to 970 million pounds ($1.23 billion) in the year to Oct.

Are Morrisons struggling financially? ›

Morrisons has struggled since being taken over in a £7 billion leveraged buyout by US private equity giant Clayton, Dubilier & Rice (CD&R) in 2022. The retailer, which is now saddled with £4 billion of debt, is understood to have lost 23 per cent of its customer base over the past three years.

Does Morrisons support Israel or Palestine? ›

Morrisons does not source any goods from the Occupied Palestinian Territories (including the West Bank). We source produce from the state of Israel and take care to ensure the integrity of origin declarations.

Who owns Morrisons now? ›

How is Morrisons supermarket performing? ›

Morrisons has continued its improved performance, as it reported a 4.1% increase in group like-for-like sales in the second quarter. The retailer said total sales excluding fuel were up 3.7% to £3.8bn for the 13 weeks to 28 April.

Who is buying over Morrisons? ›

Founded in 1978, CD&R is one of the world's oldest private equity funds and invests across six core sectors, including consumer and retail. The New York-based firm bought Morrisons for £10bn in a debt-fuelled takeover in 2021.

Has Morrisons been taken over by an American company? ›

Supermarket Morrisons has completed a £2.5bn deal to sell its 347 petrol stations to Motor Fuel Group (MFG). Both Morrisons and MFG are owned by Clayton Dubilier & Rice (CD&R), the American private equity firm who bought the supermarket three years ago.

What are the financial results of Morrisons in 2024? ›

Current financial year

Morrisons total sales excluding fuel grew 3.7% year on year to £3.8bn for the period from 29 January to 28 April 2024, with like-for-like sales up 4.1%. Underlying EBITDA for the first half of the year excluding the fuel business increased 16% year on year to £321m.

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