Morrisons reports largest sales increase among ‘Big Four’

Morrisons’ major management shakeup is showing positive results as the Bradford-based supermarket chain has achieved the largest sales increase among the ‘Big Four’ supermarkets.

Figures published by Kantar Worldpanel, for the 12 weeks ending 21 June 2015, show that for the second month in a row Morrisons outperformed Tesco, Asda, Sainsbury’s, recording a sales growth of 0.6%.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explained that Morrisons has continued “to grow ahead of the market” and “increased its market share to 11.0%, up 0.1 percentage points compared with a year ago.”

Fraser added: “While only a small increase against a weak 2014, this does represent the first market share gains made by Morrisons since December 2011.

Morrisons’ strong results over the last two months follow a number of changes David Potts, the supermarket’s chief executive, made since being appointed in the role earlier this year.

Firstly, Mr Pottsterminated five major managersin his first week on the job, and aimed to create 5,000 new in-store jobs in an attempt to revive Morrisons’ dipping sales by boosting customer service. 720 head office roles are also expected to be axed.

In addition to the supermarket chain deciding to scrap self-service machines and reintroduce over 1,000 staffed checkouts, the most recent adjustment happened last month when it was reported that the agriculture manager position has been completely dissolved.

Mr Potts’ strategy to restructure operations at Morrisons is mainly a reaction to the supermarket chain’s dismal start to 2015, which included the foreclosure of 23 storesafter reporting a pretax loss of £792m for the year ending 1st February - compared to a loss of £176m for the same period last year.

So far, Mr Pott’s alterations seem to be reviving Morrisons in a grocery market that has declined, with 0.1% less going through the tills compared to last year.

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