Morrisons has recorded its strongest Christmas sales for seven years, with like-for-like sales excluding fuel up 2.9 per cent.
Total sales also increased at the retailer, growing by two per cent excluding fuel, despite the continuing impact of store closures. Like-for-like transaction growth was strong too, going up 5.2 per cent year-on-year.
This growth was achieved by improving the supermarket’s offer, becoming more competitive on price and improving customer service, according to the retailer.
Fresh produce; beer, wine and spirits; and Morrisons’ 'Best' range all performed well – as did Nutmeg clothing. “Our performance shows that when we improve the shopping trip, customers respond,” the supermarket said in a press release.
The growth of the supermarket’s Best range has been particularly impressive, with over half of customers including at least one Best item in their basket. Morrisons launched over 100 new Best products in time for Christmas, adding to the 470 that were launched in the autumn.
“This Christmas we made further improvements to the customer shopping trip,” said Morrisons chief executive David Potts. “We stocked more of what our customers wanted to buy, more tills were open more often, and product availability improved as over half of sales went through our new ordering system. Both like-for-like and total sales grew, which was very encouraging.”
“Eighteen months ago I said that this would be a colleague-led turnaround, and our improving performance is entirely due to the continuing hard work of the Morrisons team of food makers and shopkeepers.”
Despite the supermarket’s upturn in fortunes, Morrisons expects net debt for the 2016/17 year to be around £1.2bn, with underlying profit before tax in the range of £330m to £340m.
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