Morrisons reveal sales decline
Morrisons have reported a drop in sales, although the retailer maintains that it has seen steady improvement from the previous quarter.
Like-for-like sales were down 1.8%, and 2.6% including fuel as Morrisons said the sector remained very competitive, with couponing as a significant factor.
During the quarter, the supermarket opened a further six stores, including two Morrisons M Locals, and acquired around 80 outlets to add to this convenience pipeline.
Dalton Philips, chief executive, said: “We have made a solid start to the year, with our sales performance improving since the last quarter. Our promotions have been more innovative and we are explaining Morrisons points of difference more effectively.
“These efforts were further reinforced by the horsemeat scandal which helped drive increasing customer recognition of Morrisons unique supply chain and approach to meat sourcing. They now understand that Morrisons is best placed to sell food that is what it says it is.
“Strategically, our ambition of building a genuinely multi-format, multi-channel Morrisons is right on track.”
Dan Coen, director at advisory and restructuring firm Zolfo Cooper, said: “Morrisons has paid the price for not selling food online. However, a turnaround may be on the horizon as the grocer is poised to launch an online offering, as well as rolling out up to 100 M Local convenience stores.
“Partnering with the likes of Ocado would certainly give the supermarket a ready-made platform for a successful online business. However, the joint venture remains a rumour and Morrisons may need to re-think its strategy if a deal is not confirmed in the coming months.”
This was posted in Bdaily's Members' News section by Tom Keighley .
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