Morrisons blasts Safeway IT systems

Link: Morrisons FD in running for top post

Morrisons has slated the former directors of Safeway in its interim statement, after the integration of the two businesses was made ‘difficult’ due to Safeway’s introduction of a ‘completely new’ accounting system some four weeks prior to its acquisition.

‘Insufficient training had been undertaken and the system had not been thoroughly proven prior to its introduction. The problems took time to solve but the situation is now under control,’ the statement said.

The cost of integration, excluding those from redundancies, was £4.2m which represented ‘conversion and ancillary advisory costs’.

The problems faced by Morrisons follows closely on from Sainsbury’s disastrous IT supply chain implementation that led to a £290m write off plus an estimated £200m cost for remedial action over the next two years, while MFI chief financial officer Martin Clifford-King left the company following a botched supply chain software implementation that saw the DIY retailer write down its projected sales figures.

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