Mixed fortunes then for two of the UK’s biggest grocery retailers. Morrisons has posted like-for-like third quarter growth of just over 8%, and at the same time, made a mockery of the growth at Tesco.
The figures look even better considering that analysts had said the retailer would post growth of about 7.5%.
But Morrisons must not get comfortable. This recession is nowhere near over and the coming months will be harder – and more competitive – than anyone can remember.
Moreover, Tesco is still the dominant force on the UK market. Its sales would have to fall massively for any of its rivals to have a serious chance of knocking it off its perch.
Celebrations should not be muted, either though. The Bank of England’s rate cut today can only encourage people back into stores.
Let’s see how things shape up in the next quarter.
