Morrisons reports disappointing sales

Wm Morrison reported it had missed sales targets in the run up to Christmas as the supermarket's promotions and marketing failed to pull in customers.

Wm Morrison reported it had missed sales targets in the run up to Christmas as the supermarket's promotions and marketing failed to pull in customers.

The retailer said the shaky performance meant full year performance would be "broadly in line with...expectations".

The group, which recently announced it had hired TV presenters Ant and Dec to front its new campaign, put the blame for disappointing sales on ineffective promotions and communication of its 'points of difference'.

It also said it been beaten by rivals' online and convenience stores - areas Morrisons has only recently entered.

On top of this, the economic environment meant consumers were increasingly shopping to a budget and vouchering had become a prominent feature of a highly promotional market, the group added.

In the six weeks to 30th December total sales (excluding fuel) were down by 0.9% down 0.5% when fuel was included.

Like-for-like sales dropped by 2.5% (or 2.2% including fuel).

"In a difficult market our sales performance was lower than anticipated, but we have a strong business and significant opportunities to advance our strategy, as we accelerate our multi-channel offer," said Chief Executive Dalton Philips.

Recommended

Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Three hidden gems from Japan’s overlooked stockmarket
Share tips

Three hidden gems from Japan’s overlooked stockmarket

Professional investor Eiji Saito of JPMorgan’s Japan Small Cap Growth & Income fund picks three promising stocks from Japan's vibrant but under-resear…
13 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021