Morrisons has reported a modest sales increase in its third quarter.
- The retailer’s sales rose by 2% to help reach almost £4 billion.
- Key areas of improvement include commercial excellence and operational optimisation.
- Investments were made in the supermarket’s More Card loyalty programme and price competitiveness.
- AI technology has been deployed to enhance product availability across 400 stores.
During the third quarter, spanning from 29 April to 28 July, Morrisons observed a 2% uptick in sales, bringing its total to nearly £4 billion. This growth stems from efforts to enhance commercial excellence, optimise operations, and create new value.
Notably, there was an expansion of the supermarket’s competitive pricing strategy with an additional 50 products included in the Aldi and Lidl price match initiative, increasing the total to nearly 300 items.
A significant focus was placed on boosting the More Card loyalty scheme, where over 2,000 More Card prices were introduced between August and September, demonstrating the brand’s emphasis on customer retention. Chief Executive Officer, Rami Baitiéh, highlighted the transformational potential of the More Card updates, indicating that loyalty remains a central concern.
Product availability, a crucial aspect of the retail operation, was enhanced by 2% from the previous year. The installation of artificial intelligence-powered availability cameras played a significant role in this achievement, covering more than 400 stores.
In addition to operational achievements, Morrisons is set to reduce its debt by £370 million through a 45-year ground rent agreement with Song Capital, impacting 75 stores until 2069. This move is expected to provide a steady income stream for the firm.
CEO Rami Baitiéh underlined the company’s strategic direction, emphasizing the importance of customer feedback, improved product availability, and the strengthened More Card programme to sustain growth. He acknowledged the competitive landscape, noting an improvement in switching data and a stabilization in market share despite a softer market environment in the third quarter.
As inflation decreases, customer interest in Britishness, provenance, and quality continues to rise, aligning well with Morrisons’ focus. Aided by price matching and everyday low-priced goods, the retailer strengthened its value proposition, bolstering consumer confidence in its offerings.
Morrisons’ strategic initiatives have successfully supported its growth, reflecting the supermarket’s focus on loyalty and value enhancement.
