Morrisons boosts sales amid looming ‘trolley wars’
Supermarket giant Morrisons has posted an increase in sales as it works to offload debt and compete in an ever-tougher sector.
Like-for-like sales rose 3.9 per cent in the second quarter of the year, while total sales grew 4.2 per cent to £3.9bn.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.2 per cent in the first half of the year to £344m.
Chief executive Rami Baitiéh said: “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds.
“Throughout the first half we’ve worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.”
He added that the Yorkshire-headquartered grocer had successfully “bounced back” from a Blue Yonder cyber attack last November.
Morrisons targeting £1bn savings by next year
Morrisons has targeted £1bn in cost savings as it tries to reduce the giant debt pile it was left with after a private equity buy-out in 2021.
It has now achieved £700m in savings and aims to pass the £1bn mark by the end of 2026.
The CD&R-owned supermarket closed more than 50 of its cafes eralier this year as part of its cost-saving plans, putting 365 jobs at risk.
UK grocers have increasingly put cost efficiencies at the forefront of their businesses as they grapple with the twin challenges of higher costs – from both tax hikes and rising wholesale costs – and higher competition.
Sainsbury’s said it would axe more than 3,000 roles at its cafes earlier this year, equivalent to two per cent of its workforce.
Tesco has set aside a chunk of income to fight Asda’s ‘war-chest’ of investment in lower prices, causing analysts to talk of ‘trolley-wars’ in the sector as high competition between the UK’s supermarkets giants pushes prices down for consumers.