5th May 2016 06:16
LONDON (Alliance News) - Wm Morrison Supermarkets PLC on Thursday reported a fall in total sales but growth in like-for-like sales in the first quarter of its financial year, as it warned it expects continued deflation in the UK grocery market.
The supermarket chain said total sales excluding fuel in the 13 weeks ended May fell by 1.8% year-on-year, while falling by 0.9% including fuel. On a like-for-like basis, sales excluding fuel grew by 0.7% and by 1.2% including fuel.
Morrisons said total sales were hit by supermarket closures it made and by its disposal of the 'M local' convenience-store chain.
Like-for-like transactions were up by 3.1% in the quarter, driven by a "significant" increase in sales of its Food-to-Go range, and like-for-like volume growth was "strong", Morrisons said.
Morrisons added that its new 'Free From' range has "started very well" and is proving popular with customers with allergies as well as with many others, but warned that it expects food-price deflation to continue.
"We are encouraged by progress across our six priorities. There is still much to do and our colleagues are working very hard to improve the shopping trip and save customers every penny we can. Customers are responding and satisfaction levels remain ahead of last year. We are of course pleased with a second consecutive quarter of positive like-for-like sales, which demonstrates our aim to stabilise trade is taking effect," Chief Executive David Potts said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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