12th Jan 2016 07:20
LONDON (Alliance News) - Wm Morrison Supermarkets PLC on Tuesday reported a fall in total sales in the Christmas trading period, although sales grew on a like-for-like basis excluding fuel, and it announced the planned closure of a further seven stores.
The FTSE 250-listed grocer, which was recently demoted from the FTSE 100, said total sales excluding fuel were down 1.2% in the nine weeks to January 3, on the same period the year before, and down 1.7% including fuel. On a like-for-like basis, sales excluding fuel grew 0.2% but fell 0.6% including fuel.
Morrisons said it continued to cut prices in the period while running fewer multi-save promotions, which boosted like-for-likes in premium products and in beer, wine and spirits, but this did have a knock-on effect on the number of items per basket.
Like-for-like numbers of transactions, however, increased 1.3% year-on-year, while online sales almost doubled.
Morrisons also revealed that it will close a further seven supermarkets, as it works to restructure the business. Head office restructuring and store closures will cost around GBP60 million for the full year, at the upper end of the GBP50 million to GBP60 million guided range, and Morrisons expects full-year underlying pretax profit to be between GBP295 million and GBP310 million before the GBP60 million restructuring costs. Morrisons' financial year ends on February 1.
"We are pleased with our improved trading performance over the Christmas period. While there is of course much more to do, we are making important progress in improving all aspects of the shopping trip, and our customers tell us they are pleased with the changes. In addition, we have made further progress in debt reduction, and our financial position is strong and getting stronger," Chief Executive David Potts said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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