Morrisons sees sales growth

SUPERMARKET group Morrisons saw growth in sales in the third
quarter of the year but remains cautious about consumer spending in
the key pre-Christmas sales period.

The Bradford chain saw like-for-like sales growth, excluding
fuel, of 3.7 per cent in the 14 weeks to November 4. If fuel sales
from its petrol stations are included, sales increased by 4% over
the quarter. The sales figures were at the top end of most
analysts' expectations.

In the previous seven weeks Morrisons saw sales growth of 3%
.

Chief executive Marc Bolland said that its new advertising
campaign, which features celebrities like Lulu, Alan Hansen and
Denise Van Outen, was paying off along with the Bradford
chain's focus on its fresh food and new slogan “the food
specialist for everyone”.

He said the focus on fresh fish and British-reared meat had
boosted the country's fourth-largest supermarket group. It also
made 7,500 price cuts during the period.

But Mr Bolland joined larger rivals Tesco and Sainsbury's in
warning about the outlook in the crucial run up to Christmas amid
signs shoppers' purses were being squeezed.

“We expect the market to remain competitive, and we remain
cautious on the outlook for consumer spending. However, we are
encouraged by our sales growth,” he said.

Mr Bolland said the group's optimisation plan was
progressing well with the roll out of its new green and yellow
branding and changes to its Market Street format in stores due to
be completed by next July.

“We have increased our marketing activity significantly in
support of these changes, and the campaign, particularly our new
advertising, has been very well received by customers.

“Although we are still at an early stage with our three
year optimisation plan, I am delighted with the progress that has
been made. We are on track to deliver our vision of being the food
specialist for everyone,” he said.

Morrison shares have shed 7.5% of their value in the past month
in the equity sell-off, but have still underperformed the index of
European retailers.

Sir Ken Morrison, who built it from a stall in a Bradford market
selling butter and eggs, into one of Britain's 'big
four' supermarket chains, steps down as chairman next year.

He will be replaced by former Asda director Sir Ian Gibson, who
was appointed deputy chairman earlier this year.