Sales rise at Morrisons as it broadens offer further

The FTSE 100 retailer said in its first quarter trading statement that group like-for-like sales including fuel was up 6.3%, and total sales excluding fuel were up 2.8% - or up 5.8% including fuel - after the impact of last year's store closures.

It said like-for-like volume was again positive, with more customers said to be shopping more often at Morrisons.

There was some inflation during the period, as imported food prices were affected by lower sterling.

“Irrespective of these external pressures, we remain focussed on the journey towards a Morrisons price list and becoming more competitive for customers, and we introduced another wave of 'Price Crunch' lower prices just this week,” the Wm Morrison board said in a statement.

The company claimed it performed well throughout the quarter, especially during the key events of Valentine's Day, Mother's Day and Easter.

“We continue to serve our customers better, with satisfaction levels again improved, shorter queues during the busiest periods such as Easter, and our new ordering system successfully introduced across more of our range.”

During the period, Morrisons further expanded its 'Best' range and introduced a healthy eating 'Eat Smart' range.

Its new Nutmeg clothing Womenswear offer was introduced into over 50 stores, and the Nutmeg brand was extended into baby and child accessories.

The company also launched a new website, flowerworld.co.uk, offering a range of fresh bouquets for free next day delivery to customers anywhere in Britain, and it introduced a new online and in-store 'Food to Order' offer for spring and summer, allowing customers to pre-order for parties or other special events all year round.

In addition, 'Morrisons at Amazon' was continuing to grow, the board said, with the same-day and one-hour delivery service recently extended into more London postcodes.

“Our new financial year has started well, thanks once again to the dedication of our team of food makers and shopkeepers,” said Wm Morrison chief executive David Potts.

“We are improving the shopping trip in many different ways, which is making Morrisons more popular and accessible for customers.”

Potts said those new initiatives in-store, online, in wholesale and services were beginning to build a “broader, stronger” Morrisons.

“We are confident we will continue to turnaround and grow Morrisons.

“Our expectations and guidance for 2017/18 are unchanged, including year-end net debt of less than £1bn.”