‘Smooth’ Brexit for Morrisons
Grocer big up own brands as sales soar
SUPERMARKET giants Morrisons have dismissed any Brexit fears after announcing their best sales for nine years.
The Bradford-based chain reckon they are better placed than most to cope with whatever way the UK leaves the EU, even without a deal.
That’s because they make half the own-brand and fresh food they sell – more than their main rivals.
Morrisons also say two-thirds of what they sell is British.
Bosses have gone even further by gaining approval as an Authorised Economic Operator, designed to limit delays at borders in the event of a hard Brexit.
“It means that we are considered by authorities to be a company who have policies and procedures that are thorough and wholly trusted and therefore any hold-ups at customs are, to some extent, simplified,” said Morrisons’ chief executive David Potts. He said he didn’t know if other supermarkets had applied for the same status. His comments came as the World Cup and a scorching summer helped sales in stores open at least a year jump 6.3 per cent in the three months to August 5, the strongest for nine years.
Underlying profits rose nine per cent to £193million.
Morrisons have enjoyed a revival under Potts, who has overseen major changes throughout the business and spearheaded a push into wholesaling.
The chain announced plans to pay out £91million to investors after raising their total interim dividend by 2p, or 132 per cent, to 3.85p.
Richard Hunter, head of markets at City firm Interactive Investor, said: “Bumps in the road remain, but Morrisons’ journey have certainly become more smooth in recent times.”
PROFIT: £193m 9% INCREASE