Morrisons saw its like-for-like sales grow by 0.2 per cent during the nine weeks ending January 3 2016, although these were down 0.6 per cent when fuel sales are included. The moderate growth, when fuel is excluded, comes after a period of change for the British retailer, during which it has been aiming to simplify and speed up its business.
The company noted in a press release today (January 12) that sales contribution from net new space was negative as expected after the recent disposal of 140 M stores, amongst other supermarket closures.
Since the start of the 2015/16 trading period, around 800 head office roles have also been removed, and it says it is bringing teams such as maintenance in house.
Chief Executive of Morrisons, David Potts commented, “We are pleased with our improved trading performance over the Christmas period.
“While there is of course much more to do, we are making important progress in improving all aspects of the shopping trip, and our customers tell us they are pleased with the changes.”
While year-end debt for 2015/16 had been expected to be between £1.9 billion and £2.1 billion, this was reduced to below £1.9 billion in November 2015. Morrisons has now lowered its year-end net debt guidance to the range of £1.65 billion to £1.8 billion.
Morrisons expects head office restructuring and store closure costs to amount to £60 million, and for underlying profit before tax to be higher in the second half of 2015/16 to be between £295 million to £310 million.
It has also announced the completion of its new Executive Committee with the appointment of Andy Atkinson as Group Marketing and Customer Director, after he held the role on an interim basis.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here
