Morrisons positive despite drop in Q1 sales
Savings are set to continue at Morrisons as it reported a slump in sales for its first quarter.
Morrisons has released its Q1 results (13 weeks ending 4 May 2014) showing a 4.2% drop in total sales and a 7.1% drop in like-for-like sales.
The supermarket also reported its £1bn savings plan, announced last week, will continue throughout the year. This is a reflection of a challenging food retail sector that has seen price cuts from Britain’s four biggest supermarkets, in a bid to keep up with pressure from discount brands Lidl and Aldi.
Dalton Philips, chief executive, remained optimistic, however: “The plans we set out at our results in March are on track. The reaction of our customers to the 1,200 ‘I’m Cheaper’ price cuts we announced last week has been very positive. Although it will take time for their full impact to be felt, we are confident that these permanent and meaningful reductions in our prices will enable our clear points of difference to resonate strongly with customers.”
Morrisons also intends to open a further 200 M local convenience stores to add to the 11 it has recently opened. The supermarket also reported that its online delivery outlet, Morrisons.com should be ready to deliver to 50% of UK households by the end of the year.
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