The Daily Observer London Desk: Reporter- Kathryn Williams
Tesco executive Jason Tarry has been identified as a possible candidate to replace David Potts at Morrisons, new names seem to cross the Whispers desk by the day.
The latest: former Aldi UK chief executive Matthew Barnes. Someone of Barnes’ calibre would undoubtedly be good for Morrisons.
But would Morrisons, lagging its peers on several fronts these days, be good for Barnes?
Suffering: The once keen Bradford supermarket seems to be struggling to match its peers on price – even Tesco and Sainsbury’s
The once keen Bradford supermarket seems to be struggling to match its peers on price – even Tesco and Sainsbury’s.
Sales are clearly suffering as a result, and its debts, piled on during its acquisition by private equity, are a concern as interest rates rise.
If Morrisons could rediscover its underdog mojo, it could make life difficult for the rest.
Even rival executives are rooting for the business, perhaps indicating how bad things have got.
‘I never thought I’d see the day when Morrisons was so persistently more expensive than Tesco,’ says one grocery executive, shaking his head.
Potts, a former Tesco director and an industry veteran, publicly insists he’s there for the duration. But the quickening pace of the search for his replacement is an open secret.
There’s even talk that Morrisons chairman – the one-time Tesco chief executive Sir Terry Leahy –may have to roll up his sleeves and take the helm if a suitable replacement can’t be found.
Hargreaves Lansdown under pressure
Peter Hargreaves has been accused of ‘chucking rocks’ at the investment platform he co-founded.
The billionaire and biggest shareholder of Hargreaves Lansdown has even called departing boss Chris Hill ‘useless’ for letting costs run out of control.
Now Credit Suisse has put the boot in.
Ahead of full-year results on Wednesday, the broker has downgraded it to ‘underperform’ – City-speak for ‘sell’.
It reckons the shares could fall from £9.15 today to £8, levels last seen a decade ago.
It cites poor fund performance, increased competition and cost-of-living pressures forcing people to dip into their savings.
As HL makes the seismic shift into offering hybrid advice – giving investors guidance on where to put their cash – this is a recommendation it could do without.
Shore Capital’s ‘Aladdin’s Cave’
‘Aladdin’s Cave’ is how Shore Capital refers to H&T’s centre in Rochester, Kent.
It’s where the pawnbroker, formerly Harvey & Thompson, sorts, cleans and redistributes jewellery from its shops.
Shore analyst Gary Greenwood says the place was a hive of activity on his recent visit, reflecting the upbeat trading statement last month.
Perhaps, sadly, not surprising given the consumer squeeze.
Space is tight, but there are plans to expand into a neighbouring facility.
That suggests far more growth to come.
And new systems should drive new efficiencies later this year, making H&T ‘an attractive investment opportunity’, notes Greenwood.
