// Morrisons returns to sales growth in the first quarter
// The grocer recorded a 3.4% rise in total sales to £4.7bn for the 13 weeks ending January 29
Morrisons has returned to sales growth in the first quarter as it sets a target of finding £700m of cost savings over the next three years.
Boss David Potts said: “This saving will help drive the performance of the business by enabling further investment in our loyalty programme, increasing the pace of McColl’s conversions and putting more hours into our stores, as well as mitigating the significant cost headwinds that we face.”
The grocer acquired convenience business McColl’s in May 2022 and there are now 350 of the chain’s former stores operating as Morrisons Daily stores.
For the 13 weeks ending January 29, 2023, Morrisons recorded a 3.4% rise in total sales to £4.7bn, with group like-for-like sales excluding fuel rising 0.1%.
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During the period, the grocer invested further in “significant price cutting” to “help customers through the cost-of-living crisis”.
It also opened its 500th Daily convenience store this week in Salford.
Potts said: “We still have plenty of work to do, but momentum in the business is now building with an improving trajectory over the last three quarters and like-for-like sales now in positive territory.
“Our market share has stabilised, our inflation rate is below our peers and Morrisons’ traditional competitiveness, colour and dynamism is steadily returning to every part of the business.
“Although this has been another difficult period for consumers, with inflation still at very high levels, we have continued with our programme of regular and meaningful price investments, enabled by a strong start to our cost-savings programme.”
