Bolland said that ad spend – a critical ingredient in Morrisons’ success – for its financial year commencing in February would be “in line” with this year’s.
Morrisons’ ad campaign – which it kicked off last summer with seven celebrities, from pop icon Lulu to football pundit Alan Hansen – helped the grocer attract 4 million new customers through its doors in the run-up to Christmas.
Performance was particularly strong in the south of England, heralding a new era following the difficulties it experienced in the region after buying Safeway stores.
For the six weeks to January 6, Morrisons posted like-for-like sales up 9.5 per cent, excluding fuel, trouncing the figures posted by rivals Tesco and Sainsbury’s. Analysts believe performance was also well ahead of Asda.
Bolland emphasised that other factors had also driven growth, not just advertising. “We had industry-leading availability and we improved our range. We had 8,000 new products,” he said.
Morrisons sold 40 per cent more fresh salmon this Christmas and registered a 50 per cent increase in orders for turkeys picked up in stores. The retailer said that profits would come in at the top end of market expectations.
Bolland said he would make a decision next year about introducing a customer loyalty card, after an update of IT systems.
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