Should independents be worried about Morrisons’ ‘farm shop’ initiative?

All eyes are on supermarket giant Morrisons as it enacts the next part of its ‘Morrisons Magic’ plan (led by new trading director Andrew Staniland) with a view to tap into the success of Britain’s farm shop retailing model.

In addition to streamlining its offering by removing several hundred SKUs, the move seeks to mimic the ‘feel’ of an independent, with the 126-year-old business upgrading its Market Street proposition to pull focus on premium prepared foods, and produce it says will be “a celebration of the quality of great British-farmed food”.

For some, this will have ruffled feathers – independent retail is hard enough without multiples and their ‘bigger pockets’ invading on their territory.

Others though, say they view the changes as a form of flattery, adding they’re not worried, and even going so far as to reveal they think their own sales could be bolstered as a result.

Keep the ‘local’ message strong

A staunch advocate of championing local produce, Mark Kacary of The Norfolk Deli, said he thinks the shake-up at Morrisons has come as a result of the business being “caught somewhat in a no man’s land” and doubts it will impact indies who have so much more to offer their customers.

“I’m sure they have witnessed the proliferation of farm shops and thought to themselves ‘what a good idea – we could turn part of our shop into a farm shop with the appropriate twee props, add a few items that look artisan, throw the word deli at any product that looks suitable hoping it will give it extra kudos, and maybe even give the staff a straw hat and stripy apron to complete the look’,” Mark said.

Farm shops are though, he points out, more than an aesthetic, they’re about “being an extension of a farm, allowing the farm to sell its meat or dairy, cheese and even fruit and veg directly to the public, giving them the opportunity to buy food that is grown locally, and thereby contributing directly to the local economy. It is the food of the region, and not food of a certain type.”

While those who’ve never set foot in a farm shop may well be fooled, Mark doesn’t think Morrisons’ new direction will affect regular independent customers, who are looking for a genuinely different experience when they buy their food and drink. The niche, cool, inventive small brands which thrive in farm shops and delis often can’t and have no desire to expand their operations to satisfy the demands of a supermarket, he explained – especially when they can be delisted in an instant.

A question of stock

The main issue independents have, said Paul Hargreaves, CEO of Cotswold Fayre and Flourish food halls, is that sometimes products from smaller brands go into multiples so cheap that independents can buy them at a lower price in the supermarket than from a wholesaler.

However, if anything, seeing these brands in a supermarket can have a positive knock-on effect on independent sales, particularly if exclusive arrangements are put in place – ie. the multiple takes two products from a line, with farm shops given access to the rest of a range.

“The best thing for us,” Paul continued, “is when a supermarket takes on a brand for six months then delists it. It does a great job of raising their profile, and when customers find they can buy those products elsewhere, it does wonders for indies.”

The public won’t be fooled

“All this is doing is papering over the cracks. Members of the public are more canny than we might think,” Paul added, talking about Morrisons’ changes, likening them to a form of farmwashing. “Customers these days are savvy enough to realise whether they’re walking into an authentic farm retail business, or something that’s just marketing spin.”

Emma Mosey, chair of the Farm Retail Association (FRA) and co-director of Yolk Farm in Yorkshire, agrees, and actually thinks it’s “great” that a larger retailer is taking inspiration from farm shops.

“But there are a couple of areas where they will never be able to offer the same things we do – they would be customer service, and changing the displays and merchandising regularly to introduce local products on a rolling basis. That retail ethos can’t be achieved in a supermarket. It’s fine for them to try it, but it’s highly unlikely they can compete because of our ability to deal with local suppliers in a more transparent and wholesome manner,” she said.

Interestingly, Yolk Farm is situated just minutes from a Morrisons superstore, and Emma finds it’s a benefit. Customers will, she explained, head there to do their weekly ‘big shop’, knowing they can pop over to the farm shop for “nice bits” on their way home.

“My advice for others would be that we don’t view the shopping experience as the same as a farm shop. We’re all about being the experience itself, as well as offering local produce and really good quality products. Shopping with us is about so much more than food.”

Farm shops and delis, Emma added, need to hone in on what makes them unique, and harness the power of that. “Supermarkets are good at making things look like what we’re doing, but it doesn’t hoodwink the customer!”