Morrisons benefits from ‘renaissance of the supermarket’
Morrisons has said it has made a good start to its new financial year after posting a 2.7% uplift in first quarter like-for-like sales excluding fuel.
In the 14 weeks to 9 May, the supermarket’s total sales increased by 3.3% when fuel was excluded.
David Potts, Morrisons chief executive, said: “We’ve had an encouraging start to the year, with positive like-for-like sales and some good momentum across Morrisons both on a one and two-year view. We said back in March that we expected to grow profits and reduce debt in the current year and I’m pleased to be both reiterating that guidance today and looking forward to a year of meaningful profit growth in 2022/23.”
Morrisons said there was a “renaissance of the supermarket” during the Covid-19 pandemic as customers enjoyed cooking at home more. It also revealed that its own website and tie-up with Amazon are both “complementing” its supermarkets well. Online sales during the first quarter continued to be strong, with year-on-year growth of 113%.
Meanwhile, wholesale like-for-likes increased by 21% which was primarily due to the 230 extra McColl’s stores that Morrisons has begun to supply in recent weeks.
It also noted that fuel and food-to-go sales had begun to increase as the pandemic eases across the country.
Looking ahead, Potts said: “We’re looking to the future with confidence as we see the growing warmth and affection for Morrisons from our customers flow into every area of the business. Our increasingly special butchers, bakers, fishmongers and other food makers are helping to brighten shopping trips, and the growing reach of our online businesses is attracting new customers and broadening the appeal of new Morrisons.”
