Morrisons sales up 2.8% as it monitors Middle East impact on shoppers and supply chains
Morrisons has posted a 2.8% increase in like-for-like sales in its first quarter after a “much improved” Christmas performance.
However, the retailer said it is continuing to monitor events in the Middle East as it remains alert to the war’s impact on consumer confidence and supply chains.
Subscribe to TRBIn the 13 weeks to 25 January, total sales rose by 2.6% to £4.1 billion as the retailer delivered a strong performance online.
Morrisons said its investment in lowering prices drove immediate volume increases on key lines.
Meanwhile, personalised loyalty offers delivered record redemption rates in the period.
Rami Baitiéh, Morrisons chief executive, said: “Against a highly competitive backdrop, with grocery market growth lagging previous expectations, we achieved our targets in Q1, delivering our thirteenth quarter of like-for-like sales growth.
“We know it’s tough for customers right now and we’re doing everything we can to offer them better value and give them more reasons to shop at Morrisons.
“That means continuing to invest in price, promotions and loyalty, concentrating on driving value where it matters most for our customers.”
Giving an update on its cost cutting programme, Morrisons said it made a further £49 million worth of savings in the quarter, taking the total to £894 million since the start of the programme.
Looking ahead, Baitiéh said: “The trading conditions we saw in Q1 have carried over into Q2 and the market remains highly competitive.
“Our success in key seasonal events has created some momentum and having delivered pleasing performances at Valentine’s Day and Mothers Day, we are now looking forward to Easter.
“We are watching current international events closely, alert to the impacts on consumer confidence and supply chains, and we will continue to do what we can to mitigate effects on our customers.”
