Morrisons sales jump as fuel and food-to-go rebounds

Morrisons recorded total sales up 5.3% including fuel in the 14 weeks to May 9, as it outperformed against the volatile trading of the early stages of the pandemic last year.

Group like for likes excluding fuel climbed 2.7%, while including fuel the same figure was up 4.7%, indicating a return to normality as fuel sales almost hit pre-pandemic levels.

The grocer said it did especially well in sales of holiday products for Easter and Mother’s Day, while food-to-go items including its £3 meal deals were also popular.

Morrisons’ online sales rocketed 113% year on year during the period as customers embraced online food shopping both on Morrisons.com and Morrisons on Amazon.

The expansion of its partnership with McColl’s saw its wholesale business up 21% on a like-for-like basis, with 230 additional McColl’s stores supplied with its products, while 25 were converted to the Morrisons Daily format.

While Morrisons incurred Covid-related costs of £27m during the quarter, the retailer said it is on track to achieve profits as expected.

Chief executive David Potts said: “We’ve had an encouraging start to the year, with positive like-for-like sales and some good momentum across Morrisons both on a one- and two-year view. 

“We said back in March that we expected to grow profits and reduce debt in the current year, and I’m pleased to be both reiterating that guidance today and looking forward to a year of meaningful profit growth in 2022/23. 

“The pandemic is not yet over, but it is in retreat across Britain and there is much to be positive about as something approaching normal life begins to take shape.

“Our forecourts are getting busier, we are seeing encouraging recent signs of a strong rebound of food-to-go, take-away counters and salad bars, and our popular cafes will soon fully reopen. 

“The nation has a summer of socialising and sport to look forward to and we’ll all be able to rediscover the joys of meeting up and eating well together. Whichever way consumers choose to enjoy their renewed freedom, we will be there for them.    

“We’re looking to the future with confidence as we see the growing warmth and affection for Morrisons from our customers flow into every area of the business.”