Morrisons boss David Potts shrugs off potential interest rate hike

The grocer registered its eighth consecutive quarter of growth in the 13 weeks to October 29, as like-for-like sales climbed 2.5%.

Morrisons said it had “worked hard” during the period to keep a lid on food price inflation, as its ‘Price Crunch’ and ‘Way Down’ campaigns struck a chord with shoppers on a budget.

However, consumer spending power could face a further squeeze if, as expected, the Bank of England unveils plans to raise interest rates this afternoon.

But Potts insists the work Morrisons has done around improving the quality and depth of its own-label ranges, and sharpening their prices, will help offset any further disposable income headwinds consumers face.

Speaking after unveiling Morrisons third-quarter results this morning, Potts said: “We said at the end of half one that we’d seen a tick up in own brand and a tick down in brands in terms of customer purchasing.

“I think that’s partly how customers on a budget manage their cashflow. That’s continued in the same trend in quarter three.

“I think we are well-placed to help customers in that way because we have overhauled all of our own brand over this past year.”

Potts added: “After a large number of years at extremely low interest rates, it certainly would be news today. But in the end our job is to continue the very good work by everyone here to become more competitive for customers regardless of circumstance.

“So for us, it’s more of the same – being there when customers need us is what Morrisons is all about.”