Morrisons sales fall 4.2% amid surging food price inflation

Morrisons sales fell 4.2% over the 52 weeks to 30 October 2022, with the retailer blaming surging food price inflation and the ongoing war in Ukraine for the loss.

The supermarket expects continued cost inflation to be a challenge, but was confident that improved trading momentum and cost-saving programmes would “more than offset them.”

Overall revenue for the high-street supermarket was up 2.2% from £18bn last year to £18.4bn, with Morrisons CEO David Potts saying that sales had been on a “steadily improving trend.”

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

Despite a “continuing sense of uncertainty,” and the cost-of-living crisis, Potts said the supermarket’s recent run of price cuts was beginning to turn the tide.

According to Morrisons, sales in the three weeks before Christmas 2022 were up 2.5% on last year, and group like-for-like sales excluding fuel were up 2.6%, and up 3.4% including fuel.

However, CEO David Potts described the climate as “very difficult” as the supermarket is under big pressure to increase competitiveness with discounters like Aldi, as they claim back more retail market share.

“In a very difficult period for consumers and businesses alike, we are continuing to do everything we can to keep prices down for customers and to support our colleagues,” said Potts.

“As a vertically integrated retailer, we felt the impacts of last year’s racing inflation more immediately than our competitors and this did have an impact on our pricing position.

Potts added that since October Morrisons has been executing a range of price cuts, price freezes and fuel promotions for customers as their competitive position has “considerably sharpened.”

He continued: “I’m particularly pleased with the impact of the changes to our entry-level range in early January with over 130 Savers prices cut and the range increased, which has been really popular with our customers.”

This week Morrisons launched another round of price cuts, with 820 products reduced including meat, fruit & veg and confectionery lines – taking the total number of cuts available to over 1,000.

However, recent research found that the supermarket also raised its prices more than any other major UK supermarket last year, causing shoppers to switch to other grocery retailers.