Cost-of-living crisis hits Morrisons’ sales
Morrisons has posted a 3.1% decline in third quarter like-for-like sales after trading was impacted by “subdued” consumer sentiment.
In the 13 weeks to 31 July, total revenue rose by 4.5% year-on-year to £4.8 billion and like-for-like sales were up 4.8% on a three-year basis.
Meanwhile, adjusted EBITDA declined to £177 million from £356 million a year earlier which Morrisons said was a reflection of a number of temporary and transitional factors, some of which are expected to reverse in its fourth quarter.
During the period, the supermarket also experienced unprecedented inflationary pressures in its own food manufacturing operations.
Morrisons said the cost-of-living crisis is starting to change customer shopping patterns in a number of ways and said it is doing everything it can to keep prices down.
Earlier this week, it announced that it was reducing prices on 150 of its most popular products to help make customers’ money go further.
David Potts, Morrisons chief executive, said today: “The speed, scale and severity of cost and energy price increases, exacerbated by the terrible war in Ukraine, had significant impacts through the quarter, but the market is still growing, and the energy price guarantee will ease pressure on consumers.”
He added: “I want to thank all Morrisons colleagues for their continued hard work and dedication to helping our customers through an exceptionally difficult period for UK consumers.”
