Morrisons' sales growth slows

LONDON - Morrisons has reported first quarter like-for-like sales growth of 0.8%, down on the 8.2% growth it achieved over the same period in 2009.

Morrisons: record numbers of customers
Morrisons: record numbers of customers

In the 13 weeks to 2 May, total sales were up 5.9% (excluding fuel), with like-for-like sales up just 0.8%. The retailer said that the results built further on its strong like-for-like growth in the previous three years.

In the same period a year earlier, total sales were up by 9.2% (excluding fuel), with like-for-like sales increasing by 8.2%.

The company's trading update said: "In a challenging environment for the consumer, we have continued to invest for the benefit of our customers. Our keen pricing, supported by eye-catching and innovative promotional offers, has again proved successful as consumers have continued to search for value."

The update added: "We welcomed record numbers of customers into our stores, confirming the continuing appeal of Morrisons as the food specialist for everyone."

Although the retailer remained cautious on the economic environment and consumer spending, it said its trading expectations for the current financial year remained unchanged.

In the Reputation Institute's UK Pulse Report published, this week, Morrisons was the highest-ranked supermarket, ahead of rivals Sainsbury's and Tesco.

The ranking is based on a corporate reputation calculation by averaging perceptions of four indicators among UK consumers. The four are trust, esteem, admiration and good feeling.

Morrisons appointed Dalton Philips as chief executive in January, replacing Marc Bolland, who has now joined Marks & Spencer as chief executive.

 

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