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Retailer Viewpoint – Morrisons

Retailer Viewpoint – Morrisons

Occasions boost Morrisons sales.

A sixth consecutive increase in l-f-l growth for Morrisons as the turnaround continues under CEO David Potts’ ‘Fix, Rebuild and Grow’ strategy, as Valentine’s Day, Mother’s Day and Easter helped drive sales of almost £4bn in Q1. While l-f-l growth of over 3% is the highest for any of the recent positive quarters, these figures are buoyed by significant inflation seen throughout the industry in 2017.

The market trend for rising transactions and falling basket sizes is showing no signs of slowing at Morrisons as items per basket fell a staggering 6.9% in the quarter. This proves that convenience continues to be key in the industry as consumers look to undertake more regular, smaller shopping journeys. Morrisons will be pleased with the continued growth of l-f-l transactions however, showing that it is winning customers back with the significant number of improvements and investments made during Potts’ reign so far.

Morrisons’ investment into its ‘Best’ range will enable it to compete with the explosion of delivery services such as Deliveroo and Uber Eats who are forcing supermarkets to improve the quality of their ready meals. The introduction of a new healthy ‘eat smart’ range will appeal to increasingly health conscious consumers while the steady expansion of Morrisons at Amazon continues to drive sales in its online arm which is still in its infancy compared to the other big four grocers.

Source: GlobalData 30 April 2017

April 2017

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