Morrisons hails ‘robust’ performance as it opens up online growth plans

Morrisons has hailed a “robust performance” in what it says is the fourth consecutive year of quarterly like-for-like sales growth, despite warning of “political and economic uncertainty” affecting consumer confidence.

Like-for-like sales excluding fuel were up 2.3%, but the Bradford-based supermarket has warned that a competitive landscape and uncertainty around Brexit will continue to pose challenges.

Its 2.3% growth was below analysts’ forecast of 2.5%, and below growth of 3.8% in the previous quarter.

For the 13 weeks to 5 May, group like-for-like sales including fuel for the period were up 2.7%.

Easter sales were strong, up 1.7% on a like-for-like yearly basis, and 3.4% on a two-year basis.

Morrisons sad its wholesale business continued to make good progress, and the first McColl’s conversions to Morrisons Daily, and MPK conversions to both Morrisons Daily and Safeway Daily have reportedly seen strong sales increases.

Additionally, Morrisons have agreed a deal with Ocado to allow their online partner to use their warehousing space in Erith, South London, following a fire at Ocado’s Andover site.

CEO David Potts said: “We are pleased to be helping our partner in times of need after the recent fire. We will keep growing Morrisons.com for our customers and save some cost, returning to the Erith CFC when it is more mature.

“Our new agreement allows us to have more than one digital partner, and opens the way for significant potential opportunities and partnerships in this important growth area for Morrisons.”

In March 2019, Morrisons reported its third consecutive year of growth, as chief executive David Potts’s turnaround continues to gain traction.

However Morrisons warned that the market would remain “competitive and challenging” and in Q2, favourable summer weather and the World Cup last year may impact growth for this year.

David Potts, chief executive, said: “We are improving the shopping trip and becoming more competitive for customers, and are pleased with another quarter of positive like-for-like sales.

“We will continue this important work, including on those favourite items we know our customers want to buy at Morrisons.”