Morrisons posts 11th straight quarter of growth despite ‘significant cost headwinds’
Morrisons has reported a 3% rise in like-for-like sales for its third quarter, marking the grocer’s 11th consecutive period of growth despite what it called “significant cost headwinds”.
The supermarket chain’s total sales for the 13 weeks to 27 July were up 3.5% to £4bn, supported by double-digit growth in its online arm, which the retailer said made it the fastest growing online grocer in the market during the quarter.
CEO Rami Baitiéh said Morrisons had delivered a “resilient performance” against a backdrop of inflation and macroeconomic pressures.
“Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets, staying true to Morrisons values of providing good affordable fresh food for all,” he said.
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“As we do this, we are also managing the incremental impact of the Autumn budget and other Government legislation, which has created significant cost headwinds, some of which were unexpected at the start of the financial year”.
Morrisons’ latest trading update follows in the wake of it recently announcing price cuts on 650 everyday products and rolled out tailored promotions, with additional loyalty rewards for More Card customers.
This week it also launched over 400 new products in what it described as its biggest fresh range reset in a decade.
“Our market share was stable [in Q3]…All of this will help Morrisons customers make their hard earned money go further as we head towards the peak Christmas trading period,” Baitiéh added, while paying tribute to store colleagues “for their continued commitment and hard work”.
The retailer also revealed it had made progress on its balance sheet, completing a refinancing that reduced gross debt by £261m in the quarter. Chief finance officer Jo Goff said Morrisons had now cut its total debt pile by 43% to £3.5bn since its takeover by CD&R in 2021.
Goff added the business remained on track to deliver £1bn in cost savings by the end of FY26, with £63m banked in Q3 alone. “We delivered a resilient performance in tough market conditions and with significant external cost headwinds,” she said.
Morrisons is now bracing for what it called a further uptick in inflation in Q4 but its CEO said it was “adapting and adjusting” to ensure it continued to offer value through price cuts, promotions and innovation.
5 Comments. Leave new
What a pity they forget about the people that help deliver these results the hard working colleagues which are overworked day in day out and for the minimum wage the people at the top should be ashamed
Sales is up morale is down due to low staffing levels and no pay rise
Sales is up morales down in store due to staff doing 3 and 4 jobs and no payrise
Put can’t be botherd to give its staff a pay rise
Recent price hikes are driving customers away. This last week has seen some high percentage uplift.