Numbers Stacking up for a Third Christmas Cracker for Morrisons
Sales growth at grocery multiples has slowed a little in the latest four weeks according to retailer performance figures from market research company, Nielsen.
Growth dropped to +4.2% YoY (source: Nielsen Scantrack) in the four weeks to 31st October which is the lowest we have seen since the wet summer of 2007.
Mike Watkins, senior manager retailer services at Nielsen commented, “This is a similar trend to that which we saw last year but this time it is due to falling food inflation rather than the shock of recession. With like-for-like growths running at 2% the grocery multiples are going to become more reliant on sales growths from new store openings now that inflation has eased.”
Waitrose (+11.7% 12 w/e 31/10/09) and Morrisons (+8.4% 12 w/e 31/10/09) have turned in the best performances for the quarter in terms of sales value growths and have been particularly strong in the last four weeks (+12.3 & +9% respectively).
Watkins continued, “Waitrose and Morrisons are currently outperforming other retailers and it’s no coincidence that they are the two retailers to benefit most from acquisitions this year. Waitrose now has 10% of all GB households visiting every four weeks (which is a third of a million new households) and Morrisons have attracted almost 650,000 new households to store compared to this time last year.”
This trend could set the pace for Christmas trading. Watkins concluded, “Morrisons’ sales look set to accelerate further in the coming six weeks and if so, then history could repeat itself with a third successive Christmas of stellar sales growths for the retailer. But it’s getting more and more competitive with Tesco, Sainsbury’s and Morrisons all offering shoppers either double points, coupons or vouchers to remain loyal this Christmas.“
