Member Article

Sales down 5.6% at Morrisons after a disappointing Christmas

Morrisons have reported this morning a 5.6% drop in like-for-like sales.

In the 6 weeks to 5 January 2014 total sales excluding fuel were down by 1.9% (3.3% including fuel). Like- for-like sales declined by 5.6% (7.1% including fuel)

In the trading statement Morrisons said “The Christmas period has been very challenging with a slowdown in market growth.

“Hard pressed consumers elected to economise and managed their budgets very tightly, buying less and shopping selectively across a range of formats and retailers.”

Difficult market conditions were blamed for Morrisons disappointment due to the accelerating importance of the online and convenience channels, where Morrisons is currently under-represented, and by targeted couponing which was particularly prevalent in the market this Christmas.

Morrisons still expects a net profit of £2.7bn in the coming year.

Chief Executive Officer, Dalton Philips, said: “In a very tough market our sales performance over Christmas was disappointing. However we are firmly focused on driving our core business and accelerating our penetration of the fast growing channels.

“Our convenience business is building towards an operation of scale and the first food deliveries of Morrisons.com will be made tomorrow, reaching half of UK households by the end of the year.”

Other retailers showed similarly disappointing results. Tesco sales were down 2.4% and Marks and Spencers were down 0.2%.

This was posted in Bdaily's Members' News section by Clare Burnett .