UK retailer Morrisons has posted a 3.4% increase in like-for-like sales in its first quarter, with group like-for-likes including fuel rising by 6.3%.
The retailer said that like-for-like volumes were ‘positive’ for the 13 week period to 30 April, ‘with more customers shopping more often at Morrisons’.
It noted the presence of some inflation in the market during the period, with imported food prices affected by a weaker Sterling, however, ‘irrespective of these external pressures, [Morrisons said that it] remains focussed on […] becoming more competitive for customers.’ It recently launched an extension of its Price Crunch special offers.
Strong Start
“Our new financial year has started well, thanks once again to the dedication of our team of food makers and shopkeepers,” said David Potts, Morrisons chief executive.
“We are improving the shopping trip in many different ways, which is making Morrisons more popular and accessible for customers. These new initiatives in-store, online, in wholesale and services are beginning to build a broader, stronger Morrisons.”
Further Growth
Potts added that the company is “confident we will continue to turnaround and grow Morrisons. Our expectations and guidance for 2017/18 are unchanged, including year-end net debt of less than £1 billion.”
Morrisons also noted improved sales in its private label range, with its Nutmeg clothing offer launched in 50 stores and extended into baby and child accessories during the period. It also launched a new website, www.flowerworld.co.uk, aimed at flower deliveries.
The retail contribution to its Q1 performance was 3.0%, while wholesale contributed 0.4%.
Commenting, Barclays European Food Retail Equity Research said, ‘There may be some focus on the fact that LFL items per basket fell -6.9% - an accelerating rate compared with -5.3% in 4Q. The company states that LFL volume was positive in 1Q again, suggesting that the LFL items per basket metric is being impacted by mix effects.’
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
