Morrisons sales surge ahead
Customers flocking to UK supermarket operator
May 16 2003
Supermarket chain Morrisons has seen sales increase substantially ahead of the market in the first 14 weeks of its new financial year.
In a statement issued ahead of a meeting with the Competition Commission next week to discuss its takeover bid for Safeway, Morrisons said total sales are up 14.2 per cent, with like-for-like sales 8.4 per cent ahead. Excluding petrol, store sales are up 12.5 per cent, and 6.9 per cent like-for-like.
The figures are a sharp contrast with those released by Safeway earlier this week, which showed a flat performance as Safeway struggles with the uncertainty among customers, suppliers and staff generated by the ongoing inquiry into potential bids for the business.
That process was sparked when Morrisons, the UK’s fifth biggest supermarket operator, agreed a takeover of Safeway, in fourth place. That bid, along with potential offers from Tesco, Asda, and Sainsbury’s, are the subject of the competition inquiry due to report in August.
Morrisons said the sales increases are the result of increased customer numbers and a rise in transaction values. Food sales are up 12.8 per cent, and 7.1 per cent like-for-like, while off-licence sales increased by 12.3 per cent in total, 7.1 like-for-like.
Home and leisure sales, an area of increasing importance to UK supermarket operators which the Competition Commission has indicated may be of particular significance in its assessment of the issues, are up 9.7 per cent in total for Morrisons and 3.6 per cent like-for-like.
