Talk of change at the top for Morrisons, as Sir Ken Morrison’s “iceberg” warning of impending danger has a familiar feel to it.

Talk of change at the top for Morrisons, as Sir Ken Morrison’s “iceberg” warning of impending danger has a familiar feel to it.

It’s interesting how history repeats itself. At a Morrisons shareholders’ meeting in 2012, Sir Ken Morrison said: “I believe we are witnessing the creation of a new Safeway with all the inherent problems. I believe the company is preoccupied with many other activities and neglecting the core business is dangerous.”

This was a repeat of a message he gave to the previous board in 2009. Roll on to 2014 and now Roger Owen, the company’s former group property director, calls Morrisons “a supertanker heading towards an iceberg”. He said he believed Dalton Philips, who was appointed chief executive in 2010, should have invested more money in the group’s core business.

A similar message to Sir Ken’s. A Morrisons spokesman described Owen’s comments as unwelcome, unhelpful and “reflecting a different era in retailing”. You would expect a ‘spokesman’ to defend the board, but Owen only stepped down in 2009 – hardly a different era in retailing.

When Owen joined in 1975, the business had just a dozen stores. When he retired in 2009, Morrisons had 380 stores and sales of £15.7bn, which means his views should be taken into consideration. The common consensus is that the turnaround is not working, with both sales and profits down and shares hitting an eight-year low because of fears about future earnings. But whatever is to be done, the situation is not helped by the fact that of 13 heralded appointments made during the Dalton era, only five remain in situ. It is plain to all that it’s open season on both Philips and chairman Sir Ian Gibson, with calls for both to go. And there is a whiff of David Moyes about Philips.

Moyes, former manager of Manchester United, was referred to as “the chosen one” on his appointment, while Dalton was referred to as “the new golden boy” by Sir Ken on his. How times change. I wonder how Sir Ken would refer to him now? The difference is for now Dalton is still in his role, but for how long? Only Sir Ian and the shareholders can answer that question.

  • Jamie Zuppinger, co-founder and joint managing director, Barracuda Search