Morrisons Business Update: Morrisons Magic 2.0

Morrisons used its 2026 Business Update, hosted by IGD, to set out the next phase of its strategic plan, evolving its Morrisons Magic programme into what it describes as “Morrisons Magic 2.0”.

The event brought together suppliers and Morrisons’ senior leadership to reflect on recent progress and set out how it will translate strategy into improved sales, volume growth and market share gains over the next 12 months.

While the direction of travel remains consistent, the update made clear that execution, simplification and sharper product prioritisation will define the retailer’s next 12 months.

A customer-led plan built on value and more reasons to shop

At the centre of the update was a clear articulation of Morrisons Magic 2.0 as a customer-led plan designed to deliver value by giving shoppers more reasons to choose Morrisons.

The ambition is captured across three outcomes: driving sales and volume growth, winning more shopper missions, and improving market share.

Underpinning this is a continued focus on the retailer’s value triangle of price, promotions and loyalty, supported by improvements in range, availability and customer experience.

This reflects a recognition that, with consumer confidence fragile and shoppers continuing to cut back, growth will depend on consistently delivering a compelling end-to-end value proposition rather than relying on isolated initiatives.

Strengthening value

When it comes to price, the emphasis is on ensuring competitiveness on core, high-frequency lines. This reinforces the idea that getting pricing right on everyday items drives volume without requiring significant marketing spend.

On promotions, Morrisons is taking a fewer, better and simpler approach. With thousands of promotions running each week, Morrisons acknowledged that many deliver limited sales impact. The focus now is on more targeted high-visibility offers, alongside clearer value communication in-store.

Loyalty continues to grow in importance. With millions of active users and 79% of sales linked to the scheme, Morrisons is leaning further into personalisation, using data to deliver targeted offers and drive engagement. The evolution of its data platform, including new tools for smaller suppliers, signals an intention to embed data more deeply into commercial decision-making.

Simplification through range and “diamonds”

One of the clearest themes from the update was a move toward simplification, particularly within ranging.

Morrisons acknowledged that its current SKU density is significantly higher than competitors, creating complexity for shoppers and operational challenges in-store. As a result, category optimisation will play a central role in Morrisons Magic 2.0, with underperforming products removed to create space for best-selling lines.

This is closely linked to the concept of “diamonds”. These are must-have items for shoppers and can anchor category performance. By focusing space, availability and promotional support on these products, Morrisons aims to improve both ease of shop and sales productivity.

Reasserting differentiation through fresh and Market Street

Morrisons also used the update to reinforce its long-standing differentiation in fresh food and Market Street.

The retailer is looking to evolve and reinvest in this proposition, including reopening closed counters and introducing greater theatre in-store. This reflects both customer demand and a recognition that fresh remains a key driver of basket spend and brand perception.

The strategy aligns with a broader focus on quality excellence, including improvements to product standards, packaging and usability. Together, these initiatives aim to support Morrisons’ positioning around delivering quality and value simultaneously.

Multi-channel growth and operational focus

Beyond the core supermarket estate, Morrisons highlighted multi-channel growth as a key opportunity.

Online performance continues to improve, supported by expanded partnerships and investment in service, availability and delivery capacity. Morrisons is also scaling its rapid and convenience-led propositions, reflecting the growing importance of immediacy within grocery shopping missions.

Convenience remains a major growth lever, with ongoing expansion through franchised stores and a renewed focus on improving execution, availability and ranging within the channel.

At the same time, there was a clear acknowledgement that operational consistency remains a priority, particularly in areas such as forecasting, logistics and availability. Improvements here are expected to unlock further growth by ensuring that strong propositions translate into on-shelf execution.

What this means for suppliers

The overarching message from Morrisons’ Business Update is one of evolution rather than reinvention.

The strategy remains anchored in value, with Morrisons Magic 2.0 refining how this is delivered through greater simplicity, stronger prioritisation and increased use of data.

For suppliers, success will depend on aligning with these priorities:

• Supporting clear value delivery, whether through pricing, promotions or loyalty.

• Contributing to range simplification and category optimisation, focusing on products that drive volume.

• Leveraging data and personalisation to improve targeting and effectiveness.

• Enhancing quality and differentiation, particularly in fresh and key strategic categories.

As Morrisons looks to build on its recent momentum, the challenge will be turning a clearer, more focused strategy into consistently strong execution. Those able to align closely with this agenda will be best positioned to grow alongside the retailer in the year ahead.

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