Morrisons has successfully maintained its sales momentum in the third quarter, driven by strategic initiatives.
- The supermarket’s like-for-like sales increased by 2.9%, with total sales reaching £3.9 billion.
- Key strategies including enhanced availability and an expanded loyalty programme have underpinned this growth.
- The implementation of AI-powered availability technologies and a broadened price match strategy contributed to improved customer engagement.
- Morrisons has also reduced its debt by over 40% following a significant property transaction.
Morrisons has reported sustained sales momentum for its third quarter, attributing this success to its continued focus on customer-centric strategies. The company’s like-for-like sales increased by 2.9% compared to the previous quarter, while total sales rose to £3.9 billion. Although this represents a slight decrease from the previous quarter’s 4.1% growth, the increase in total sales from £3.8 billion highlights the effectiveness of Morrisons’ strategic initiatives.
Central to Morrisons’ success has been its improved product availability, facilitated by the introduction of AI-powered availability cameras across more than 400 stores. This technological advancement has resulted in a 2 percentage point improvement year-on-year in product availability. In addition, Morrisons has enhanced its price competitiveness by introducing a further 50 products to its Aldi and Lidl Price Match scheme, reinforcing its value proposition to customers.
The expansion of Morrisons’ loyalty scheme has also played a crucial role in maintaining its sales momentum. The ‘Morrisons More Card’ has been developed into a comprehensive rolling programme, offering customers significant savings through over 2,000 ‘More Card Prices’. This expansion extends to e-commerce as well, with plans to integrate More Card points into Morrisons’ Amazon channel and convenience stores.
Morrisons’ strategic developments are set against the backdrop of a significant financial transaction in which the supermarket chain has engaged in a £331 million property deal with Song Capital. According to Jo Goff, Morrisons’ Chief Financial Officer, the proceeds from this transaction have been used to reduce the company’s debt, bringing it down by more than 40%. This financial maneuver underscores Morrisons’ commitment to maintaining a strong balance sheet while continuing to invest in growth opportunities.
Morrisons’ strategic focus on availability and customer loyalty has proven successful, driving continued sales growth and significant financial improvements.
