Morrisons reports continued strong sales momentum in its Q3 as strategies on availability and loyalty schemes show positive results.
- Like-for-like sales for Morrisons increased by 2.9% in the recent quarter, marking a notable improvement although slightly down from the previous quarter’s 4.1% growth.
- Total sales for the quarter reached £3.9 billion, a 2.1% rise, largely attributed to enhanced product availability and competitive pricing.
- The retailer has significantly expanded its loyalty programme, with new elements and initiatives aimed at increasing customer retention and satisfaction.
- Morrisons’ strategic financial moves, including a £331 million property deal, aim to reduce debt and strengthen its financial standing.
Morrisons has established a consistent upward trajectory in its sales figures for the third quarter, as highlighted by a 2.9% increase in like-for-like sales. This comes despite a slight dip from the 4.1% growth reported in the preceding quarter, with total sales climbing to £3.9 billion. These results underscore the successful implementation of strategies focused on better understanding and meeting customer demand, particularly through the use of advanced technologies like AI-powered availability cameras in over 400 stores. Such innovations have led to an improvement in product availability by two percentage points year-on-year.
The company has attributed much of its sales success to enhancements in its loyalty scheme. The introduction of the Morrisons More Card, which offers substantial savings through a rolling programme, has been pivotal. In early September, more than 2,000 ‘More Card Prices’ were introduced, providing significant discounts on various products. Further, the loyalty programme has been expanded to include More Card points for purchases on Amazon, with plans to extend its benefits to Morrisons’ convenience stores in the near future. This comprehensive approach to loyalty reflects Morrisons’ commitment to providing exceptional value and fostering customer loyalty.
Pricing strategy also played a crucial role in Morrisons’ strong sales performance. Chief Executive Rami Baitiéh noted that the company’s competitive pricing, bolstered by its Aldi and Lidl price match initiatives, has enhanced consumer confidence in Morrisons’ value proposition. As inflation eases, customers are showing increased appreciation for British-sourced products, quality, and good value, areas where Morrisons is particularly strong.
In parallel with its sales strategies, Morrisons is taking significant steps to improve its financial health. A notable £331 million property deal with Song Capital has been secured, aimed at reducing the retailer’s debt by over 40%. Chief Financial Officer Jo Goff emphasized that this transaction, along with the earlier divestiture of their forecourt business, is part of a broader deleveraging strategy. These efforts have succeeded in bringing the company’s debt down to an estimated £3.6 billion, representing a 41% decrease from its peak.
Morrisons’ strategic focus on availability and loyalty, coupled with financial maneuvers, continues to drive its sales momentum.
