Morrisons has reported a drop in its sales this morning. Indeed, the supermarket group reported that growth has slowed down from the previous quarter. Morrisons is the fourth largest supermarket group in the UK.
The drop in growth is below analysts’ forecasts for the group.
Total like-for-like sales, excluding fuel, rose by 5.6% in its third quarter. This figure came in lower than analysts’ average forecast of 6.1% growth. Growth in the previous quarter came in at 6.3%, making it the best sales performance in nine years. However, this was driven by the UK’s scorching weather and World Cup success.
Morrisons said in a trading statement:
“As expected, retail LFL sales growth eased slightly quarter on quarter without the impact of the favorable weather and World Cup which benefitted Q2.”
“Sales growth was again strong, with a better and broader offer for customers across the whole store. Morrisons now has almost 1,000 year-round ‘Best’ products, and over 250 exclusively for Christmas.”
Additionally, Chief Executive David Potts commented on the results:
“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.”
“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.”
David Potts joined Morrisons in order to lead a recovery following damage caused by Aldi and Lidl as well as previous management mistakes.
The supermarket group currently has over 500 UK stores.
Morrisons’ shares have increased by 18.5% this year as David Potts has overseen a steady trading improvement for the group. This was achieved by offering more competitive prices, improved product ranges and availability and improved customer service.
Earlier in October, we reported that retail sales dropped in September following a successful UK summer of hot weather and football.
At 08:45 GMT today, shares in Morrison Supermarkets plc (LON:MRW) were trading at -3.83%.