4 months ago
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The Frenchman trying to save Morrisons is a hard-charging former air force colonel and 'Mr Fixit' who was CEO at Carrefour and leads a punishing regime of six-day weeks ended by hour-long meetings at 7pm.
Rami Baitiéh, 52, swapped Paris for Bradford last month and has already delivered a stark warning to staff that businesses are like 'burning candles' which will burn out unless changed.
He has since begun daily unannounced store visits and has left his own email address in the complaints section of the supermarket's website for customers to contact him directly.
He is also seeking to whip bosses into shape by inviting the top 150 people at the retailer to join him on an hour-long session on Google Chat, the instant messaging platform.
Mr Baitiéh was born in Lebanon before moving to France to attend business school followed by a stint at Harvard studying digital strategy, and lists 'fast turnarounds' and 'cultural, organisational and digital change' as some of his specialties on LinkedIn.
The globe-trotter led Carrefour's divisions in Taiwan, Argentina and Spain before taking over the domestic business in France in June 2020. He has overseen impressive results, with sales in the last financial year up 10.2% to €834m (£718m).
Mr Baitiéh's social media accounts project an image of a man who has already been hitting shop floors meeting staff and customers. Other photos show him on holiday, watching the Rugby World Cup and on a judging panel at Miss Paris 2023.
Mr Baitiéh shaking hands with a Morrisons customer during a visit to one of its stores
Mr Baitiéh's social media accounts project an image of a man who enjoys making personal visits to stores and suppliers
Sir Terry Leahy, the former head of Tesco and an advisor to CD&R, describes Mr Baitiéh as an 'exceptionally talented and highly capable leader with a strong track record of driving performance wherever he has been posted'.
Carrefour outperformed all French food retailers in volume terms in 2022, and came first based on market share gains.
But he faces an uphill battle to transform Morrisons - which is mired in trouble under its new private equity owners, Clayton Dubilier & Rice (CD&R). The chain's market share dropped by 9.1% to 8.6% over the past year, according to Kantar, and it has been booted out of the Big Four by Aldi.
Mr Baitiéh took over as Morrisons CEO last month from David Potts after 20 years at Carrefour. Swapping Paris for Bradford is likely to be a culture shock for Mr Baitiéh.
He is not believed to have any business experience in the UK except for a programme mentoring entrepreneurs with the universities of Oxford and Cambridge.
The Frenchman's salary has not been disclosed, although Mr Potts was paid £4million a year during Morrisons' final years as a public company.
The businessman is active on social media, previously sharing this photo of himself on holiday
The Frenchman is seen as a turnaround specialist, and will need his skills at Morrisons (he is seen here meeting some of the supermarket's workers)
Insiders say Mr Baitiéh has told staff that businesses are like 'burning candles' which will burn out unless changed
In a quote put out by Morrisons, Mr Baitiéh sought to emphasise his familiarity with the retailer.
'Morrisons holds a special place for shoppers across the UK, and I am honoured to be joining the business to help build on the strong links the company has with its loyal customers and the communities where it operates,' he said.
'As a manufacturer, wholesaler and seller of food, Morrisons is uniquely positioned to grow in the coming years while remaining deeply focused on customer satisfaction.'
Insiders say Mr Baitiéh has been injecting a sense of urgency among its 105,000 staff by laying bare the issues at Morrisons.
'It was a a 'gulp' moment for everyone,' one told The Sunday Times.
The issues surrounding Morrisons date back to 2021 when private equity giant Clayton Dubilier & Rice (CD&R) acquired the chain for £7billion ahead of a steep rise in interest rates.
The Frenchman spent 20 years at Carrefour. He is seen with a live animal display in one of its supermarkets
Carrefour outperformed all French food retailers in volume terms in 2022, and came first based on market share gains
Mr Baitiéh watching on from the stands during the Rugby World Cup, which was held in France
The deal left Morrisons needing to pay £400million of annual interest payments on £6.6billion of debt.
In March earlier this year, it was reported that the company was hemorrhaging cash after the buyout, racking up £1.5billion of losses.
Mr Baitiéh has informed staff that the two most important groups in Morrisons are buyers and store managers and more autonomy needs to be granted to them.
He is also likely to improve Morrisons' E-commerce operations.
Supermarkets across the UK have been struggling amid the rising cost of living, which has led to increased shoplifting.
A total of 365,164 incidents of shoplifting were logged by police in England and Wales – 1,000 a day and the most since 2019, the Office for National Statistics said.
The dramatic rise in shoplifting offences will come as no surprise to retailers, who have repeatedly warned of the threat posed to their staff by violent offenders and called for the police to take the issue more seriously.
This led to the heads of 86 major retailers finding common ground in demanding action on the shoplifting crisis in October, with theft said to be costing the sector nearly £1.8billion.
Mr Baitiéh's key focus is said to be on improving in-store availability and driving up higher volumes
The businessman holding a chick during a marketing stunt at Carrefour
Although Morrisons' cash flow is improving with profits expected to come in at £1billion this year, there is growing expectation among industry sources that Baitiéh will be forced to make price cuts.
Sales at the supermarket chain rose 3.7 per cent in the 12 weeks to the end of November, which was considerably lower than at other supermarkets.
Mr Baitiéh's key focus is said to be on improving in-store availability and driving up higher volumes, which will in turn generate cash so that prices can be cut and sales can rise.
To combat this, CD&R have been open to sourcing more fresh food from third parties.
The private equity giant is also hoping to deliver a capital injection by engineering a deal in which Motor Fuel Group acquires Morrisons' 340 petrol forecourts. But talks are said to have stalled.
Mr Baitiéh's language has been similar to Rolls-Royce boss Tufan Erginbilgic, who after taking over the company described it as a 'burning platform' that needed to transform.
Joanne McGuinness, Usdaw national officer, said: 'It clearly concerning for our members when they read that the CEO thinks the company needs turning around. We note that he has identified the need to improve customer service and Usdaw believes the best to achieve that is by investing in the staff.'
Mr Baitiéh's language has been similar to Rolls-Royce boss Tufan Erginbilgic, who after taking over the company described it as a 'burning platform' that needed to transform
The executive holding a bottle of wine in a social media video from when he was chief executive of Carrefour
