Dalton Philips: A good fit for Morrisons

Irishman Dalton Philips may be a relative unknown in UK grocery but, coming from the school of ex-Asda boss Allan Leighton, he should fit in well as Morrisons’ new chief executive.

When he moves from Canadian retailer Loblaw to Morrisons in March, two of his three main competitors will also be former protégés of Leighton - Asda’s Andy Bond and Sainsbury’sJustin King.

Philips inherits a Morrisons on good form. It was the top performer over Christmas and, in terms of new stores, there is massive scope for growth. But the entire British supermarkets sector is highly competitive and with all the grocers are in good shape, there is no margin for error.

According to those close to Philips, he is up for the challenge. Leighton - Philips’ current boss at Loblaw - says Philips has excellent retailing “nous” and is very ambitious.

“He is a hard worker,” Leighton says. “Which might seem like a simple point, but it’s very important in retail. He’s able to multi-task and really gets stuck into projects.”

Many believe Philips’ experience at Loblaw will be invaluable at Morrisons. IGD senior business analyst Stewart Samuel points out that both grocers are in the middle of transformation plans focused on simplifying operations, improving fresh food and overhauling the supply chain.

Philips should also be in a good position to push Morrisons’ growth beyond the transformation programme, says Samuel, with potential for format developments, broadening non-food and developing an online offer. Loblaw operates several formats and has the biggest non-food offer of the Canadian grocers.

Natalie Berg, research director at Planet Retail, says Philips has proved able to turn his hand to most things. “He took on merchandising responsibility recently and was key in operating the different-sized formats,” she says. “He was also touted as the key successor to take over from Allan Leighton.”

Family man Philips, 41, has also “worked almost everywhere in the world” says Leighton, which would be an advantage if Morrisons were to consider international expansion.

As the son of a County Wicklow egg farmer, Philips left Ireland for New Zealand to start his career as a store manager for Jardine Matheson. He has since had stints working in countries including Brazil and Germany.

Philips is a keen marathon runner, and many who have worked with him say he is personable. Halfords chief executive David Wild, who worked with him at Walmart Germany, says he is “impossible to dislike”.

Leighton believes Philips’ “nice style” - which, according to Canadian newspaper The Globe and Mail prompted him to be described as “drop-dead gorgeous” - will fit well with the Morrisons team.

He says Philips and chairman Sir Ian Gibson will make a “good combination” and he believes he will even be able to charm founder Sir Ken Morrison.

And, just as his predecessor Marc Bolland refused to bow down to pressure from the City when he first took over at Morrisons to immediately launch online food shopping and convenience shops, Leighton says Philips will “make his own decisions after a proper assessment”. “He’s not easily seduced, and Morrisons is a great food business so he will focus on keeping it that way,” says Leighton.

Bolland has left big shoes to fill, but those who know Philips are confident he can continue Morrisons’ remarkable renaissance.