Morrisons has reported robust third-quarter figures, driven by increased marketing activity supporting the roll-out of its new branding and Market Street store presentation.
Like-for-like sales in the 14 weeks to November 4 were up 3.7 per cent, an increase on the first seven weeks of the second half when like-for-likes rose by 3 per cent. Total sales rose 4.6 per cent in the same period. In the 39 weeks to November 4, like-for-like sales were up 3.1 per cent and total sales 3.2 per cent.
Morrisons said in a statement: “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 and business performance in quarter three.”
Deutsche Bank research analyst James Collins said the acceleration in growth in the last seven weeks of the quarter – driven by the retailer’s ad offensive – has helped Morrison’s “drive significant customer gains, particularly versus Sainsbury’s, which would suggest that it is succeeding in changing brand perceptions”.
The grocer said the roll-out of its new branding and in-store presentation to the whole portfolio is set to be completed by the end of July. During the period, the retailer made 7,500 price cuts.
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