UK retailer Morrisons has published its Q1 trading update, reporting its strongest quarterly like-for-like sales growth for three years.
The supermarket said that it had achieved an increase in group like-for-like sales (excluding fuel/VAT) of 4.6%, with its total sales up by 3.9% to hit £3.9 billion.
This was the seventh consecutive quarter of like-for-like sales improvement, and Morrisons reported that customer satisfaction surveys had found that complaints had more than halved in the last 20 weeks.
Morrisons reported that it had introduced Aldi and Lidl Price Match schemes in February 2024, while its McColl’s conversion programme was “nearing completion” with over 910 McColl’s stores converted to Morrisons Daily stores.
Rami Baitiéh, Morrisons chief executive, said: “In January I outlined our plan to reinvigorate, refresh and strengthen Morrisons as we started our next chapter. Those plans are now in full swing with the whole business engaged in the three key pillars of work that will be the foundation of the future for Morrisons: commercial excellence, operations optimisation and new value creation.
“Across the business we have identified many areas where we can raise our game and make small improvements which collectively will result in a significantly enhanced shopping experience for our customers. Availability, waste, newness, innovation, speed and accuracy are all on an improving trend and our customers are beginning to notice. Our key customer metrics are improving and complaints – which in many ways are the canaries in the retail coalmine – are down almost 60% in the last 20 weeks.”
Baitiéh continued: “For longer term and sustainable growth, we have developed new plans for growth in wholesale, convenience, franchise, export markets and global sourcing and we are now moving quickly to implement them. In our franchise business, for example, we have built a new team specifically to accelerate new customer acquisition and recently we have opened, on average, three franchise convenience stores a week and we intend to open many more in the coming months.
“I have been so impressed with the way all our colleagues are embracing the start of our next chapter and I want to thank every one of them for the important part that they are playing in shaping our future. There is a real sense of optimism and renewal running through the whole company as we return to a growth path.”
Morrisons eggs achieve UK carbon neutral BSI Kitemark
Morrisons reported that it has become the first retailer in the UK to have a product verified as carbon neutral by independent scheme provider British Standards Institution (BSI).
It said that Morrisons launched its carbon neutral eggs in 2022 (now known as ‘Better For Our Planet Eggs’) and the range underwent “rigorous independent testing” by BSI.
To secure its carbon neutral certification from BSI, Morrisons said it introduced a circular feeding scheme, maintained the health and welfare of the hens and used renewable energy to power the hen house. In addition to this the woodland, hedgerows, grass and wildflower meadows were reportedly maintained and developed to “capture and store carbon”.
Sophie Throup, Morrisons manufacturing director – technical and sustainability, said: “We are pleased to have our ‘Better For Our Planet’ eggs recognised and certified by the British Standards Institute. This achievement is an assurance to our customers that these eggs are in fact better for our planet. The range is the first of many more sustainable products we hope to launch in the future as we work to support farmers supplying us on a net zero pathway.”
