Morrisons sees sales growth slow, supermarket expects busy Christmas

The supermarket chain saw its sales growth slow in its third quarter but expects Christmas to boost sales figures in its final quarter.

Morrisons Supermarket
Source: Bloomberg

Morrison recorded a rise in a third quarter (Q3) sales of 5.6%, but slower growth than many analysts expected of around 1.3%, according to its most recent trading update.

Analysts were expecting to see the supermarket chain record sales growth of around 1.8%, which is what the company posted during its first quarter. Sales in the company’s second quarter gained a boost from the summer heatwave in the UK and the FIFA World Cup, the company said.

‘After another period of strong growth, and with more customers enjoying shopping at Morrisons, we have now completed three years of positive like for like,’ Morrisons CEO David Potts said.

‘Our exceptional team of food makers and shopkeepers are providing good quality food at great prices, and building a broader offer in store, online and for our wholesale customers,’ he added.

Driving sales for Christmas

Morrisons continued with its pace of opening new stores, with the company opening its third new supermarket in Acocks Green, Birmingham, and is performing well, the company said.

The supermarket chain continues to roll out new stores under its ‘Fresh Look’ programme, with developments getting a face lift and new branding. Morrisons has refurbished a further 60 stores as it gears up for Christmas.

The company is looking forward to a ‘busy festive period’, with the supermarket already seeing success in terms of sales of its Christmas products.

Morrisons share price has performed relatively well, with it hovering at around 244p, climbing from 204 levels back in late-March.

By comparison its share price has outperformed rival Tesco, but has struggled to gain ground on Sainsbury’s, which will report its half year results on Thursday.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer