11th Jan 2005 07:01
Morrison(Wm.)Supermarkets PLC11 January 2005 Wm Morrison Supermarkets Plc Christmas Trading Statement 11th January 2005 In the 6 weeks ending January 9th 2005, sales under the Morrison fascia showedan uplift of 31.9% (39.0% including fuel). This includes the contribution fromboth new stores opened in 2004 and Safeway conversions. On a like for like basiscore Morrison store sales were up 0.1% (4.0% including fuel). As anticipated the like for like performance in core Morrisons stores wasaffected by a combination of competitors new store openings, somecannibalisation resulting from Safeway conversions, one less trading day andaggressive couponing activity by others to support the relaunch of stores whichwe were required to divest. Resultantly we believe the performance of coreMorrison stores is acceptable short term - especially given the tough 2003comparatives of 9.6% like for like main store growth. Over the same period, sales under the continuing Safeway fascia on a like forlike basis fell 8.4% (6.1% including fuel). The Safeway 2004 store conversion programme completed at the end of Novemberwhen 56 stores had re-opened as Morrison. We have been encouraged by theincrease in sales per square foot, since conversion, which, in the various storecategories, have been as follows: 15,000 - 25,000 sq ft £20.55 psf (26 conversions)25,000 - 40,000 sq ft £19.16 psf (29 conversions)40,000 sq ft £21.05 psf (1 conversion) In ascending store size category the uplifts against unconverted Safeway storesare respectively 41%, 41% and 58%. Sales per square foot in converted stores arenaturally somewhat flattered by Christmas trading but do indicate the goodprogress of the conversion programme. Converted stores traded 4.7% higher thanduring the same period last year (7.2% including fuel) which compares extremelyfavourably with the performance of the remaining Safeway stores. We served our customers well in both Morrisons and Safeway over the Christmasand New Year period ensuring good availability which was well judged andresulted in minimal carry over of seasonal stocks particularly when comparedwith the residues experienced by Safeway 12 months ago. This has allowed us topresent the stores in their best possible light in the post holiday period. Year to date we are still on target to deliver anticipated like for like growthwithin Morrison stores which are up 5.0% after 49 weeks (7.4% including fuel).Core Safeway stores have traded 9.1% down (7.1% including fuel) year to datewhilst converted stores are down 3.2% (0.7% including fuel) a figure whichincludes their performance pre conversion. Accordingly we are on target to meetour expectations with regards profit before exceptional items for the year ended30th January 2005. A full breakdown of weekly customer numbers, sales per customer transaction andresultant sales per square foot follows. The Safeway store conversion programme recommences later in January and afurther 180 stores will be converted this year. Future like for like comparatives in Morrison stores will be lower than inrecent years due to the reasons outlined above, nonetheless we remain confidentwe can build on the encouraging rise in customer numbers at Safeway and achievean increase in the basket size in both converted and unconverted stores, toensure we reach our target of £19.72 per square foot in these units by 2007. The financial year ends on January 30th and we will announce group results for2004/05 on Wednesday March 23rd. TRADING PERFORMANCE 6 weeks to 9 January 2005 Core Morrison Converted Stores Safeway * Food 0.0 7.0 (8.1)Off licence 3.9 7.2 1.6 0.5 7.0 (6.3)Non food (5.1) (16.5) (30.3)Total ex petrol 0.1 4.7 (8.4)Petrol 31.6 18.1 10.4Total 4.0 7.2 (6.1) 49 weeks to 9 January 2005 Food 5.0 (2.7) (9.3)Off licence 4.8 1.1 (1.6) 5.0 (2.1) (8.1)Non food 4.8 (16.7) (22.8)Total ex petrol 5.0 (3.2) (9.1)Petrol 22.5 8.9 6.2Total 7.4 (0.7) (7.1) * YTD includes period prior to conversion N.B. During the period stores were closed on Saturday 25th, Sunday 26th, Monday27th December 2004 and Saturday 1st January 2005 (Scotland 25th December, 26thDecember 2004, 1st January and 2nd January 2005). In addition stores traded bank holiday hours on Tuesday 28th December and Monday3rd January. In 2003 stores were only closed on 3 days - Thursday 25th, Friday 26th Decemberand Thursday 1st January, all of which coincided with bank holidays. COMPARATIVE BY STORE SIZE 6 weeks to 9 January 2005 Core Morrison % cf Morrison Converted % cf Safeway Safeway Stores *Below 15,000 sq ftAverage number of customers 22,395 10,542Average take per customer £9.12 £12.99Average sales per sq ft £14.16 £13.67 15,000 - 25,000 sq ftAverage number of customers 20,754 92.0 19,102 125.0 15,278Average take per customer £15.41 156.9 £24.18 120.4 £20.09Average sales per sq ft £15.07 138.0 £20.79 133.3 £15.60 25,000 - 40,000 sq ftAverage number of customers 27,542 81.2 22,368 120.8 18,516Average take per customer £28.86 81.3 £23.47 104.2 £22.53Average sales per sq ft £22.36 80.5 £17.99 121.9 £14.76 Above 40,000 sq ftAverage number of customers 29,049 111.5 32,382 127.6 25,378Average take per customer £30.22 95.1 £28.73 105.3 £27.28Average sales per sq ft £20.51 107.5 £22.04 158.3 £13.92 49 weeks to 9 January 2005 Below 15,000 sq ftAverage number of customers 22,652 10,907Average take per customer £8.29 £12.45Average sales per sq ft £13.00 £14.02 15,000 - 25,000 sq ftAverage number of customers 21,674 98.1 21,261 137.9 15,414Average take per customer £13.95 157.6 £21.99 116.8 £18.82Average sales per sq ft £14.13 145.4 £20.55 140.8 £14.59 25,000 - 40,000 sq ftAverage number of customers 29,287 90.1 26,401 143.5 18,404Average take per customer £25.46 79.0 £20.11 95.6 £21.04Average sales per sq ft £20.89 91.7 £19.16 141.4 £13.55 Above 40,000 sq ftAverage number of customers 32,299 104.7 33,810 131.8 25,644Average take per customer £26.83 98.3 £26.38 102.3 £25.78Average sales per sq ft £20.04 105.0 £21.05 157.7 £13.35 * Since conversion N.B. original target for conversion stores was £19.72 per sq ft by 2007 MORRISONS INVESTOR RELATIONS DAY Wm Morrison Supermarkets Plc is holding an Investor Relations day on Wednesday12th January 2005. Attendees will visit a distribution centre and a producepackhouse in Northamptonshire, plus two Morrisons stores in the area. Members of Morrisons senior management team will show analysts and investorsaround the various facilities and make a lunchtime presentation covering siteand store details. The presentation will be available on the Company's web site atwww.morrisons.co.uk from 1.30pm The Company will not be giving any new material information - the Christmastrading statement having been released the day prior to the visit. ENQUIRIES Citigate Dewe Rogerson - 0207 638 9571Jonathan Clare, Simon Rigby, Sarah Gestetner Wm Morrison Supermarkets Plc - 01274 356 804Gillian Hall This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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