Morrisons claims ‘solid start’ to the year despite sales fall

Morrisons sales fell in the first quarter of the year, as talks with Ocado about an online operation dragged on.

Like-for-like sales excluding fuel fell 1.8%, the retailer announced today – a performance it said was in line with its expectations.

“We have made a solid start to the year, with our sales performance improving since the last quarter.  Our promotions have been more innovative and we are explaining Morrisons’ points of difference more effectively,” said CEO Dalton Philips.

“Strategically, our ambition of building a genuinely multi-format, multi-channel Morrisons is right on track.”

Morrisons said plans to launch an online food operation by January 2014 were progressing and that discussions with Ocado were continuing.

The company opened six stores during the 13 weeks to 5 May, including two M-Local shops. It also acquired 80 locations for convenience stores, including 49 former Blockbuster stores, six former HMV shops and seven former Jessops. Morrisons is on track to have 100 c-stores open by the end of the year – 20 of them opening in the first half.

It said its ‘Fresh Format’ overhaul of stores would be implemented in 40% of its estate by the end of the year.

The retailer also trumpeted its clean bill of health during the horsemeat scandal, which broke in January. The Food Standards Agency (FSA) found no traces of horsemeat in Morrisons products, it said. “[Customers] now understand that Morrisons is best placed to sell food that is what it says it is,” Dalton Philips added.

In March, Morrisons reported a 2.1% fall in like-for-like sales for the year to 3 February, with pre-tax profits down 7.2% to £879m.

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