Morrisons experienced a slight sales increase in Q3, highlighting improvements in availability and loyalty strategy.
- The supermarket’s revenue rose by 2% to nearly £4 billion from April to July, driven by strategic pillars.
- Morrisons expanded its Aldi and Lidl price match programme, now covering almost 300 products.
- Significant investments were made in the More Card, adding over 2,000 special prices.
- AI technology improved product availability in over 400 stores.
Morrisons, the grocery giant, reported a modest sales increase during its third quarter, with a 2% rise to almost £4 billion between 29 April and 28 July. This growth is attributed to the company’s focus on commercial excellence, operations optimisation, and new value creation. By concentrating on these strategic pillars, Morrisons has pushed forward its growth trajectory.
The supermarket chain expanded its price matching with discount retailers Aldi and Lidl, adding 50 more products to this initiative. Now, nearly 300 goods compete in price with these rivals, reflecting Morrisons’ dedication to price competitiveness and customer value.
In a bid to enhance customer loyalty, Morrisons made a substantial investment in its More Card during August and September. This investment involved a rolling programme introducing over 2,000 exclusive More Card prices. Rami Baitiéh, the CEO, stated, “Loyalty remains a key focus for us,” underscoring the initiative’s importance.
A significant technological advancement included the deployment of AI-powered availability cameras in over 400 stores. This innovation resulted in a 2% year-on-year improvement in product availability, marking a step forward in operational efficiency.
Looking ahead to reducing its debt, Morrisons entered into a 45-year ground rent agreement with Song Capital. This deals aims to alleviate £370 million from the debt pile, while ensuring stable income from 75 stores until 2069. CEO Rami Baitiéh commented on the supermarket’s progress, asserting that despite a softer market, Morrisons’ relative position improved, with a stabilised market share.
As inflation trends downward, there is an increasing appreciation among customers for Britishness, provenance, quality, and great value—hallmarks within Morrisons’ offerings. Baitiéh remarked that the combination of Aldi and Lidl price matches, More Card offers, and consistently low prices enhance customer confidence in the value offered by Morrisons.
Morrisons’ strategic initiatives in pricing, loyalty, and technology continue to support its modest sales growth.
