Morrisons outperforms rival supermarkets with 8.2% sales growth

Thursday, 04 June 2009

Supermarket chain Morrisons is continuing to outperform many of its rivals with like-for-like sales growth of 8.2% in the first quarter of the financial year, chief executive Marc Bolland told the annual meeting today.

He said: "Morrisons continues to grow strongly. Our broadening customer appeal saw us welcome half a million more new customers each week to our stores during the first quarter.

"This is a particularly good result, which is on top of the similar level of growth we reported in last year's first quarter update.

"With shoppers increasingly attracted by our outstanding fresh food and our great value, we are taking the next step from national to nationwide."

The group is said to have made a good start to the new financial year, continuing to achieve sales growth well ahead of the market, despite facing tough prior year comparative figures.

In the 13 weeks to May 3 total sales excluding fuel were up by 9.2% (5.7% including
fuel).

Like-for-like sales increased by 8.2% (5.0% including fuel), building further on the 8.2% growth (11.2% including fuel) achieved in the full year ended 1 February 2009.

Customer numbers increased once again, with growth well ahead of the market.

Morrisons, said Bolland, continued to invest in value with a further 8,000 price cuts and over 5,000 price promotions featuring as part of its ‘Price Crunch' campaign.

The ‘Value' range was further extended and market share gains from premium food retailers saw ‘The Best' range achieve good sales performance, he said.

Morrisons has opened two new stores so far this financial year, and, in addition to the
normal programme of openings and store extensions, 2009 will see the integration of
the Co-Op and Somerfield stores, following the transaction announced last year.

The retailer has taken possession of these stores, which are now closed for refurbishment and re-branding to Morrisons standards, including the installation of Market Street.

The first converted stores to open will be at Kingsbridge (Devon) and Shefford
(Bedfordshire) in June.

A number of stores are currently going through a competition review process with the OFT.

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