Morrisons returns to sales growth as it opens 500th convenience store
Morrisons has returned to sales growth in its first quarter with revenue climbing by 3.4% to £4.7 billion.
In the 13 weeks to 29 January, group like-for-like sales edged up 0.1% to mark a steady improvement over the supermarket’s last three trading quarters.
During the period, Morrisons implemented significant price cutting programmes to help customers through the cost of living crisis. It also continued to invest in its My Morrisons loyalty scheme which helped to increase customer engagement.
In addition, the retailer has announced a three year £700 million cost savings programme to enable it to invest more in lowering prices, increase service levels, invest in loyalty and expand its convenience footprint.
David Potts, chief executive of Morrisons, said: “We still have plenty of work to do, but momentum in the business is now building with an improving trajectory over the last three quarters and like-for-like sales now in positive territory. Our market share has stabilised, our inflation rate is below our peers, and Morrisons traditional competitiveness, colour and dynamism is steadily returning to every part of the business.
“We have targeted £700 million of cost savings over the next three years. This saving will help drive the performance of the business by enabling further investment in our loyalty programme, increasing the pace of McColl’s conversions, putting more hours into our stores, as well as mitigating the significant cost headwinds that we face.
“Although this has been another difficult period for consumers with inflation still at very high levels, we have continued with our programme of regular and meaningful price investments, enabled by a strong start to our cost savings programme.
“The cornerstone of the improving picture at Morrisons has been our colleagues. Across the whole business, they have continued to help our customers by providing a colourful, vibrant, fresh food focused shopping experience and I want to thank everyone at Morrisons for their continued hard work and positivity.”
This week, Morrisons opened its 500th Morrisons Daily convenience store at Phoebe Street in Salford. The supermarket is expecting to reach a milestone 750 Morrisons Daily stores in the autumn and the 1,000 stores by early next year.
Potts added: “This is an important milestone for us and cements a leading position in the UK’s growing convenience market. Whether it’s a franchise store or a former McColl’s store, customers are responding really well to the carefully tailored Morrisons Daily fresh food convenience offer, and clearly appreciate our great value and our bright, modern store designs. With every new Morrisons Daily conversion, we see an immediate and substantial uplift in like-for-like sales, often of more than 20%.”
