UK grocery retailer Morrisons has made what it described as an “encouraging start” to its new financial year with sales growing ahead of the market, despite continuing “challenging” economic conditions in the country.
The supermarket operator said in a statement for the 13 weeks to 1 May 2011 that its total sales, excluding fuel, had risen by 4.2 per cent, while like-for-like sales for the quarter had increased by 2.5 per cent compared with the same period a year before.
Morrisons said its sales during the quarter had been boosted by its ‘Biggest Ever Price Crunch’ promotion at the beginning of the year, followed by separate campaigns focusing on Easter and the royal wedding.
Despite this, the retailer said the economic situation remained “challenging”, with the high price of oil and increases in other commodity prices compounding existing pressures on consumers’ disposable incomes.
In the statement, Morrisons’ board said it was “encouraged” by the company’s progress during the first quarter, but remained “cautious” in view of consumers’ falling disposable incomes and an “uncertain economic environment”.
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