Morrisons - comment
Anything that helps Morrisons boost revenue and gross profit (albeit at a lower gross margin) is welcome. Morrisons produces 40% of its fresh food and seeks to increase private-label sales to other supermarkets. Expanding the sales will capture more of the gross profit for Morrisons, growing the benefits of its vertical integration by increasing sales/profit. However, we do not know how comfortable other supermarkets will get with giving access to sales data to Morrisons or how buyers will get comfortable that Morrisons will not favour its stores in the event of shortages.