WM Morrisons is the UK’s fourth largest grocery retailer with 12% market share. Like the other retailers in the UK, the company is facing harsh domestic competition as well as a stagnant UK economy. Morrisons is currently lagging its peers in growing its convenience store presence as well as its online shopping site, this is a worry as both segments are the fastest growing sales sectors of the UK grocery market. The company is also focusing on growing its own label products, which most peers have already been doing, to increase margins and build brand loyalty. Morrisons has focused on pure grocery retailing which has given them the strongest LFL sales growth of the UK grocery sector. The company has the lowest gearing (15%) out of its UK peers and an A3 credit rating by Moody’s, which should give the company financial flexibility to implement its new growth strategy to catch up to peers. Morrison has a unique advantage in its vertical integration, which should reduce the risk of supply disruption and help with product quality control.