Morrisons sales lift gives bounce to rival grocers

trading: Supermarket reports better-than-expected festive period

Supermarket Morrisons enjoyed an “especially strong” festive season as it posted a 2.1% hike in sales.

The chain said the like-for-like retail sales performance in the 10 weeks to January 7 came as it resisted hiking prices despite surging costs, with the price of a basket of key Christmas items the same as last year.

For the crucial six-week Christmas and New Year period, same-store retail sales picked up pace, rising 2.8%, said Morrisons.

Including a 0.7% rise in wholesale trading, group like-for-like sales excluding fuel rose 2.8% over the 10 weeks, while online sales at Morrisons.com grew by more than 10%.

Morrisons kicks off the festive trading updates from the Big Four supermarkets with a better-than-expected set of numbers.

Analysts had pencilled in a 1.7% rise in group comparable sales.

Morrisons chief executive David Potts said: “Our plans to become a broader and stronger business are progressing well, with another period of positive likefor-like sales and the start of the rolling programme to supply McColl’s.”

Morrisons shares lifted in early trading, sparking gains for rivals Sainsbury’s and Tesco.

Mr Potts said while the group kept the prices of key Christmas lines on hold, there was still some inflation across food despite a fall in some produce prices.

Morrisons also confirmed its wholesale deal with McColl’s convenience stores would begin rolling out this week.

A further 25 stores will be added to the supply network each week.

It started supplying some tobacco to McColl’s earlier than planned, which helped push up wholesale sales in the 10 weeks to January 7.

Mr Potts has led a recovery of the grocery chain by investing in price cuts and calling time on under-performing stores.

The McColl’s deal was announced in August.

It is also part of his turnaround efforts and will see the group relaunch the Safeway brand.

The partnership will see the supermarket supply Safeway and branded products to 1,300 convenience shops and 350 newsagents.

Morrisons shares closed up 2.38% or 5.4p at 232.3p.