Morrisons’ like-for-like sales forecast to rise 1.5% in fourth quarter of growth

MORRISONS is expected to notch up a fourth consecutive quarter of likefor-like sales growth when the supermarket releases its latest results on Thursday.

Analysts at HSBC are forecasting a 1.5 per cent rise in like-for-like sales in the third quarter, driven by improved grocery offerings.

That number is lower than the two per cent growth bagged in the second quarter, but would still mark four straight quarters of positive growth.

It comes amid a turnaround plan under chief executive David Potts, who took the helm last year following the removal of former boss Dalton Philips.

Mr Potts went on to ink a new deal with Ocado and sign a landmark agreement with online Income Growth Trust 2.20p; Kings Arms Yard VCT 0.50p; Lowland Investment Co. 11p; NAHL Group 6.35p; North American Income Trust 7p; Pembroke VCT 2p; Safestyle UK 3.75p; Schroder Income Growth Fund 4.60p; Threadneedle UK Select Trust Ltd 1.95p; Twentyfour Income Fund Ltd 1.50p; TwentyFour Select giant Amazon to supply fresh food to customers earlier this year.

HSBC analyst David McCarthy applauded the management for strengthening the balance Monthly Income Fund Ltd. 1.35191p UK Mortgages Ltd 1.50p; Wynnstay Group 4p Tomorrow: Alumasc Group 3.80p; Aquatic Foods Group 0.20p; Foreign & Colonial Investment Trust 2.35p; Mattioli Woods 8.65p; Mears Group 3.30p; Mercantile Investment Trust (New Co.) 10.25p; Produce Investments 4.88p; Smith (D sheet, which he said will help protect the grocer as price competition and costs – related to the weaker pound and national living wage – start to rise.

However, he said the S) 8.80p Wednesday: Andrews Sykes Group 11.90p; Carillion 5.80p; Statpro Group 0.85p Thursday: International Public Partnerships Ltd 3.325p; Murray Income Trust 11.25p; Redde 5.15p; Standard Life UK Smaller Companies Trust 5.20p; STM Group 0.50p company still remains in a weak strategic position amid its sector peers.

He said: “Aldi’s [market] share is now 7.4 per cent versus less than 10 per cent for Morrisons. Friday: Ascential 1.50p; Begbies Traynor Group 1.60p; Bluefield Solar Income Fund Ltd 3.25p/1.50p; Bodycote 5p; Cello Group 1p; Cobham 2.03p; Eckoh 0.45p; Elecosoft 0.15p; F&C Private Equity Trust 6.12p; Fisher (James) & Sons 8.55p; Hastings Group Holdings 3.30p; Huntsworth 0.50p;

“Given Aldi offers just over 2,000 lines and Morrisons around 10 times that amount, and given Aldi is typically lower priced, this suggests Aldi’s buying power per line is substantially Investors Capital Trust (New Co.) 1.17p; Johnson Service Group 0.80p; Judges Scientific 9p; Jupiter Dividend & Growth Trust 0.45p/ 1.26p; M.P. Evans Group 2.25p; OneSavings Bank 2.90p; Rightmove (New Co.) 19p; SIG 1.83p; Synthomer 3.50p; UNITE Group 6p; Weir Group 15p higher than Morrisons on average.

“Aldi has halved the gap in market share with Morrisons in under two years. In the same period, Tesco has lengthened its lead.”