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Story URL: http://www.silicon.com/retailandleisure/0,3800011842,39166395,00.htm

Morrisons plans £110m IT revamp
No frills makeover for 30-year-old systems

By Gemma Simpson

Published: Friday 16 March 2007

Morrisons is to invest £110m over the next three years to improve its IT infrastructure - but don't expect any radical changes from the supermarket chain.

Mark Bolland, chief executive officer for Morrisons, said in its preliminary results report: "We will not be seeking to implement any 'leading edge' technology, as we believe our competitive advantages come in other areas, such as in-store service."

Bolland added the supermarket chain is approaching the point of requiring a change to the core IT systems that have been developed in-house over many years, with some up to 30 years old.

As part of the £110m investment, Morrisons will move from bespoke to packaged software and shift its trading, store, warehousing, distribution, payroll and financial systems on to new platforms.

The IT upgrade programme will be an in-house effort: a new management information systems director is due to be recruited to take the head it up.

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A spokeswoman for Morrisons told silicon.com the IT revamp is part of its £450m modernisation spend and this is the main driver behind the technology overhaul.

Morrisons is investing a total of £450m over the next three years to renovate its business with the remaining cash split between in-store, manufacturing and distribution sectors.

It will invest £180m to spruce up its stores and improve the range of its goods. Distribution will get £90m - with the investment going towards opening three new depots - and manufacturing will get £70m.

Morrisons is also upping its environmental ante and aims to reduce its carbon footprint by 36 per cent and get 10 per cent of its energy from renewable sources by 2010.