Morrisons on target but growth slows

SUPERMARKET group Morrisons today said that it had enjoyed further growth in its market share during the first quarter of the year but at a slower rate.

In a first quarter trading statement, the Bradford-based group, which recently welcomed new chief executive Dalton Philips who has replaced Marc Bolland, said that while it remains cautious about the economic environment and consumer spending, it is confident it will hit its target during the current year.

In the 13 weeks to May 2 total sales excluding fuel were up by 5.9% (9.5% including fuel) while like-for-like sales grew by 0.8% (5.2% including fuel).

Finance director Richared Pennycook said: “As expected, commodity prices have continued to ease, resulting in the virtual elimination of food inflation and lower market growth. We are satisfied with our sales performance, which has continued to outpace the market despite facing tough prior year comparative numbers.”
 
The group said that it welcomed a record number of customers into its stores during the quarter, attracted by what it said was its “keen pricing, supported by eye-catching and innovative promotional offers” as shoppers continue to “search for value”.

Morrisons said that Mr Philips, is “currently familiarising himself with the group’s operations”.

The Irishman, 41, who joined on March 29, was previously chief operating officer of Loblaw, Canada’s largest food distributor and a leading provider of general merchandise, pharmacy and financial products and services, since 2007.
 
Morrisons said that its net debt position remains in line with expectations.