Morrisons has described its first quarter performance as “satisfactory” despite a 1% fall in like-for-like sales.
The retailer described the economic environment as challenging with high oil and other commodity prices putting pressure on shoppers’ disposable incomes. Total sales for the 13 weeks to 29 April excluding fuel were up 1.5%.
During the quarter Morrisons ran a Fuel Britannia promotion offering 15p a litre off for shoppers spending £60 in store. Sales including fuel were up 3.1%. Like-for-likes including fuel were up 0.9%.
Morrisons said it was continuing to focus on the delivery of its previously announced range of strategic and operating initiatives such as its plan to liberate 750,000 sq ft of selling space in its stores, its own label revamp and push into convenience.
This combined with a close management of its cost base, meant it remains confident of achieving continued profitable growth.
Despite the fall in sales and the uncertain economic situation, Morrisons said its financial position for the year remains unchanged.