Shares in Morrisons fell 5.6 per cent yesterday after the Bradford-based chain reported flat Christmas sales.
Morrisons’ like-for-like sales increased by only 0.1 per cent in the six weeks to January 9. Growth was four per cent when petrol sales are included.
Morrisons said Christmas sales had been hit by a combination of factors, including competitors opening new stores and aggressively using special offer coupons at former Safeway stores that it was forced to sell.
After Christmas there was "minimal carry over of seasonal stocks particularly when compared with the residues experienced by Safeway 12 months ago."
However, including new stores and Safeway conversions to the Morrisons brand, sales rose 31.9 per cent - or 39 per cent with fuel.
The chain said its performance is acceptable and that the 56 stores it has converted to Morrisons enjoyed higher sales per square foot than stores still trading under the Safeway name.
Former Safeway stores now branded Morrisons are selling between 41 per cent and 58 per cent more per square foot, depending on their size, than those still branded Safeway.
Analysts expressed disappointed at the results, but Morrisons claims to still be on target to meet profit expectations for the year to January 30, and achieve growth forecasts for Morrisons-branded stores.
Shares in Morrisons closed down 12 pence at 203.5p.
Sainsbury's will release a trading update on Thursday and Tesco next Tuesday.
No comments yet