Morrisons’ strategic focus on availability and loyalty has driven sales growth in the third quarter.
- The supermarket’s like-for-like sales increased by 2.9%, with total sales reaching £3.9 billion.
- Improved availability, aided by AI technology, and an expanded loyalty programme played crucial roles in performance.
- Morrisons is enhancing price competitiveness through strategic initiatives such as the Aldi and Lidl Price Match.
- A significant £331 million property deal with Song Capital aims to reduce Morrisons’ debt by over 40%.
Morrisons reported a continuation of its positive sales momentum in the third quarter. Like-for-like sales saw a growth of 2.9% over the quarter ending 28 July, with total sales reaching £3.9 billion, an increase of 2.1% primarily driven by volume. However, this marks a slight decline from the previous quarter’s 4.1% rise in like-for-like sales, although total sales improved from £3.8 billion.
The enhancement of product availability emerged as a significant factor, with the implementation of AI-powered availability cameras in over 400 stores contributing to a 2% year-on-year improvement. The introduction of additional products in the Aldi and Lidl Price Match further supported this positive shift.
In terms of customer loyalty, Morrisons rolled out an expanded More Card programme, which includes a variety of new features. The programme in September brought over 2,000 ‘More Card Prices,’ offering substantial discounts. Plans to extend the More Card to convenience stores in October aim to further increase the scheme’s reach.
Rami Baitiéh, CEO of Morrisons, highlighted the supermarket’s increased price competitiveness. According to Baitiéh, the combination of Aldi and Lidl price matching, More Card offers, and everyday low prices has bolstered consumer trust in Morrisons’ value proposition.
Parallel to its sales and customer strategy, Morrisons completed a significant financial transaction. A property deal with real estate investor Song Capital, valued at £331 million, is projected to reduce the company’s debt by more than 40%. As CFO Jo Goff noted, the properties remain under Morrisons’ control, with over 80% of the retail estate being freehold. This follows an earlier move to reduce debt by disposing of its forecourt business.
Morrisons’ strategic emphasis on availability, loyalty, and financial optimisation is driving sustained growth and stability in a competitive market.
