Investors eye strong earnings at Morrisons

Billy Bambrough
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Morrisons Launches Price Match  Scheme
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Supermarket chain Morrisons is expected to deliver its best half yearly performance in four years this week.

The chain, which is in the middle of a back-to-basics turnaround, has been slashing prices and doing deals with competitors to try and tempt customers through its doors.

Analysts are expecting like-for-like sales growth of 0.7 per cent for its first half when reports on Thursday. The consensus on underlying profit before tax is £150m, compared to £140m in the same period last year.

Chief executive David Potts has been targetting customers who have migrated to discounters Aldi and Lidl as the price war escalates.

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Meanwhile, Morrisons has ramped up its ties with Amazon unveiling plans to add the online retail giant’s lockers to its supermarkets across the country.

Hundreds of Amazon lockers used for click and collect deliveries will be introduced this year, letting customers pick up items at their convenience rather than having to be at home for a delivery.

It follows a major partnership between Morrisons and Amazon agreed earlier this year, adding Morrisons’ food range to Amazon's Pantry, Fresh and Prime Now grocery delivery services.

“Many busy customers can’t wait at home for their delivery, and we believe the option to pick it up from one of our hundreds of conveniently located supermarkets will be attractive,” said Morrisons finance chief Trevor Strain.

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Amazon launched its fully fledged Fresh delivery service in June, taking on the big four supermarkets after dabbling in the area for more than a year, adding some food items to its one and two hour Prime delivery service and next-day delivery service Pantry.