date:Jul 03, 2012
The Morrisons strategy of vertical integration is pretty hard to understand. It is not employed by any of the other major retailers, there is already over-capacity in food manufacturing, why would a major retailer want to be involved?
But Dave McCarthy of Investec added:Morrisons management clearly thinks vertical integration is the thing to do, it allows Morrisons to be differentiated and react quicker, and it is not paying someone else a margin.