Morrison Supermarkets (LON:MRW) reported another quarter of growing sales on Thursday, with its new business as a wholesaler appearing to make a positive mark on the group’s figures already.

The supermarket chain increased its group like-for-like sales excluding fuel by 3.6 percent in the 13 weeks to 6 May, comprising contributions from retail of 1.8 percent and wholesale of 1.8 percent.

Like-for-like sales for the entire group – including fuel – grew 1.9 percent. The group’s recent move into wholesaling, beginning with a supply partnership for convenience store chain McColl’s, contributed 1.8 percent to group like-for-like sales, and the group is on track for its targets of £700 million of annualised sales by the end of the year and £1bn in due course.

David Potts, chief executive, said: “We are pleased to have made a strong start to the year, again becoming more competitive for customers while delivering growth on growth. We expect to continue to improve in the year ahead.”

Volume growth also accelerated in the first quarter, while inflation remained flat. However, margin pressures still remain a worry for the store’s investors, with Morrisons saying again on Thursday that it would be taking further measures to “improve competitiveness”.

Shares in Morrison Supermarkets (LON:MRW) are currently up 2.65 percent at 251.90 (0844GMT).