Morrisons reports strong Christmas trading
Bradford-headquartered supermarket Morrisons has reported a 2.8% total sales growth for the ten weeks to January 7, with an “especially strong” Christmas and New Year period.
Total sales were up 2.6% excluding fuel and 2.8% including fuel. Group like-for-like sales excluding fuel were up 2.8%, comprising contributions from retail of 2.1% and wholesale of 0.7%. Group LFL including fuel was up 3%.
Morrisons said that sales were especially strong over the Christmas and New Year period with Group LFL of 3.7% for the six weeks to 7 January, comprising retail of 2.8% and wholesale of 0.9%.
David Potts, chief executive, said: “More and more customers found more things they wanted to buy at competitive prices at Morrisons this Christmas. The hard work and friendliness of our colleagues continues to be key in delivering our strengthening performance, and I would like to thank them for everything they do for our customers.
“Our plans to become a broader and stronger business are progressing well, with another period of positive like-for-like sales and the start of the rolling programme to supply McColl’s.”
The Big Four supermarket said that they had again worked hard to improve the shopping trip and serve customers better. It said that automated ordering was live in all stores across most categories, helping improve availability and stock levels throughout the period.
Morrisons said that customer satisfaction improved year-on-year, stating in its trading update this morning: “We had more tills open, shorter queues, and customers noticed our colleagues’ friendliness even at the busiest times. We also continued to become more competitive and, despite input cost pressures on many commodities, the price of a basket of key Christmas items was the same as last year. LFL volume was positive.”
LFL transactions were up 2.3% year-on-year and sales of the supermarket’s ‘Best’ premium range were up 25%. ‘Food to Order’ sales were up over 50%, with the service available in-store and online, and the wider range including both ‘Free From’ and ‘Morrisons Makes It’.
During Q3 and early Q4, Morrisons introduced an almost entirely new Home & Leisure range, replacing 95% of items with more modern designs at great value prices, which the firm said was proving popular with customers.
Morrisons.com sales grew over 10% and more customers were able to access Morrisons.com through new store pick areas, especially in the north east of England.
Wholesale growth continues to accelerate. The strong wholesale sales performance in the period was helped by supplying some tobacco to our partner McColl’s earlier than initially planned.
Morrisons added: “After some successful trials, the previously announced agreement to start supplying all 1,650 McColl’s stores with both Safeway products and national brands will begin this month. It will be a rolling programme of around 25 additional McColl’s stores each week.”
