Morrisons hit by fresh sales slump

Morrisons LFL sales have slumped 2.6% (excluding fuel)
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Supermarket chain Morrisons has seen another drop in sales, with a 2.6% fall in like-for-like (LFL) sales excluding fuel in the 13 weeks to 1 November 2015.

Q3 total sales were also down by 2% excluding fuel but the company said its financial position was strong, expecting net debt to be lower by the end of the second half (H2) than its previous guidance of £1.9bn-£2.1bn. It also said it expected its underlying profit before tax would be higher in H2 than H1.

Morrisons said it had continued to invest in low prices, including reducing its voucher offers, which had resulted in a price deflation of 2.2% in Q3. It also recently announced the closure of 11 supermarkets and 140 M local stores.

David Potts, chief executive at Morrisons, said: “The business is moving at pace on the long journey towards improving the shopping trip for customers. Our priorities for the rest of the year are unchanged - to stabilise trading, reduce costs and further improve the capability of the leadership team. We are making good progress in many areas and customers are noticing improvements.”

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