Morrisons has posted an improvement in like-for-like sales in the third quarter, and said lower prices and its new loyalty scheme had cut through with shoppers.
The supermarket saw group like-for-like sales excluding fuel and VAT increase 2.9% for the 13 weeks ending July 30, 2023, down 3.1% on 2021/22.
Morrisons chief executive David Potts said: “Our sharper prices and new loyalty scheme are resonating strongly with customers and I’m pleased to be reporting our fifth consecutive quarter of like-for-like sales improvement.”
The retailer confirmed its full-year underlying EBITDA guidance but noted that inflation had been “uncomfortably high”.
Morrisons like-for-like sales growth excluding fuel
Potts said: “We are shaping a broader and stronger Morrisons. Alongside the growth in our supermarkets, we have made further progress across the business with our wholesale, convenience and food manufacturing operations also showing consistent growth.
“We are continuing to help our customers with the increased cost of living in a number ways, including a regular programme of price cuts and ‘Prices Locked Low’, an enhanced loyalty scheme, an expanded Savers range and over 220 new own-brand lines.
“In July we were pleased to be the first UK supermarket to introduce entry price point products into our convenience stores – we now have a growing range of Savers products in over 500 convenience stores across the country.
“Our new loyalty scheme, the Morrisons More card, has made great progress since the launch in May and the reintroduced points system, More card exclusive offers and Morrisons Fivers rewards have all been very popular with customers. We now have over a million additional active More card users and a steadily increasing swipe rate.
“I want to thank our store colleagues for their continued great work and especially for the flawless introduction of the new More card loyalty scheme in our shops, which has brought the benefits of the scheme to our customers’ attention in a bright, colourful and engaging way.
“I would also like to thank every one of our colleagues across all our operations for the part they have played in increasing the momentum of the business and serving our customers so well.”
Morrisons chief financial officer Jo Goff said: “Although inflation has been uncomfortably high, there have also been some very welcome recent signs of a decrease in inflationary pressures and we have delivered over £200m of our own cost savings so far this year.
“We always look to pass these benefits through to our customers as quickly as possible, and our food-making model is a further advantage in getting any cost reductions rapidly reflected in shelf edge prices. I am pleased to be confirming our guidance for full-year underlying EBITDA to be up.”
The results come as Morrisons announced Rami Baitiéh, the former chief executive of Carrefour France, has been named as its new CEO.
Baitiéh will assume the position in November and will collaborate closely with David Potts, who has served as Morrisons chief executive for nine years, for a handover period.
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