Morrisons boss blasts ‘avalanche’ of Budget costs amid warnings of higher prices and fewer workers

THE boss of Morrisons has urged the Government to stagger its “avalanche” of Budget business costs, amid warnings they will lead to higher prices and fewer workers.

Rami Baitieh, who took over as chief exec a year ago, told The Sun he had urged Labour to consider the combined wall of costs retailers face.

They range from the employers’ National Insurance changes to business rates increases, minimum wage hike and packaging levy.

It is understood the cost from National Insurance changes alone will hit Morrisons by around £75million.

Mr Baitieh said: “The National Insurance change adds insult to injury. The problem is that it’s an avalanche of costs that is coming all at once.

“So I have asked them, can we not defer some of it or go step by step, like a doctor would do — raising the dose with seven pills over seven days.”

Mr Baitieh was parachuted into Morrisons last November to address tumbling sales and savage market share erosion.

The energetic Frenchman, who built his career at Carrefour, has s lived up to the old saying that “retail is detail”.

On a store tour in Colindale, North London, he scrutinises confusing signs for red onions and gives several lessons to staff on the correct height for stacks of shopping baskets.

He also insists all senior members of staff are ready to hand out baskets to customers, saying: “It adjusts the ego, it shows that you are here to serve customers, no matter your position.”

Mr Baitieh has also revamped the Morrisons More loyalty card, insisted store managers have roundtables with customers once a month and imposed daily after-hours phonecalls with his team.

It has not been easy amid reports of an exodus of directors, while the woes of Morrisons, and its rival Asda, so soon after multibillion takeovers have raised questions about the impact of private equity ownership.

But his tactics are working, with Morrisons’ first increase in market share in three years.

Under him, it has sold off its petrol stations, and cut costs by £200million to lower its debt pile by 40 per cent.

He is also closing two food factories and pulled out of a loss-making Ocado warehouse, while committing to instore bakeries and fishmongers, and better farmer relationships.

Holidays firm hits new high

ONLINE travel agency On the Beach is having fun in the sun as demand for package holidays hits a record high.

The company’s shares soared by a fifth yesterday after it rewarded investors with a £25million buy-back and boosted its dividend.

On the Beach reported that profits have surged by a quarter to £31million in the past year, while total sales reached a new high on the back of a 13 per cent increase in passenger numbers.

The Manchester-based firm claimed that bookings are already 25 per cent higher than last year as its customers put holidays at the top of their budget priorities.

It also expected next summer to be “significantly ahead” of last year after calling a truce in its bookings feud with budget airline Ryanair.

It now offers Ryanair flights as an option with its package holiday deals.

Shaken to ‘core

BRITAIN’S biggest sandwich-maker Greencore has warned of pricier sarnies after the Budget lumbered it with “unanticipated and unbudgeted” costs of £15million.

Boss Dalton Philips said the costs “would ultimately end up being footed by the consumer”.

Greencore has already cut costs by shutting a soup factory and cutting staff.

The sale of a vegetable oil business boosted its profits by 36 per cent to £61.5million, despite a 5.6 per cent slip in revenues to £1.81billion.