Morrisons becomes 'more competitive' after reporting growth in sales

Morrisons, the Bradford-headquartered supermarket chain, has reported growth in underlying sales for the 13 weeks ending 6th May.

During this period, the UK’s fourth biggest supermarket operator saw group like-for-like sales, excluding fuel, increase by 3.6%.

Group like-for-like sales, including fuel, were up 1.9%, and total sales rose by 3.8%, excluding fuel (2.1% including fuel).

The supermarket said the growth in sales was boosted by the launch of ‘Savers’, which is its lowest-priced own label range, initially comprising almost 300 ambient, chilled and frozen items.

In addition, Morrisons’ ‘Nutmeg’ brand continued to perform well, and the new Womenswear range is now in almost 130 stores.

Morrisons also opened two new stores in the period, in Abergavenny and St. Ives near Cambridge.

The supermarket is also open for business as a wholesaler, and started supplying its new partner McColl’s through a rolling programme of around 25 stores per week during the first quarter. These stores receive a fresh, frozen and ambient offer from Morrisons, comprising both brands and the new Safeway range.

In addition, Morrisons is supplying some McColl’s stores with tobacco and some ambient products slightly earlier than we initially planned.

Overall, the supermarket chain’s wholesale supply initiatives contributed 1.8% to group like-for-like sales, and it is on track to hit the target of £700m of annualised sales by the end of the year and £1bn in due course.

David Potts, chief executive of Morrisons, said: “We are pleased to have made a strong start to the year, again becoming more competitive for customers while delivering growth on growth. We expect to continue to improve in the year ahead.

“During a busy period of exciting new ranges, new store openings, strong supermarket and wholesale growth, and the peaks and troughs of the seasons, our colleagues once again did an outstanding job for customers.”