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Supermarkets

Amazon could buy Morrisons amid upbeat results

It has been suggested that Amazon could be buying Morrisons in order to challenge UK supermarkets and the Asda-Sainsbury’s merger, according to retail marketing insight firm Tcc Global.

Bryan Roberts, global insight director at the company, said: “A takeover bid from Amazon is not beyond the realm of possibility, as the ecommerce behemoth looks to grow its footprint in UK retail – something that became clear after rumours surfaced that it made moves to buy Waitrose in 2017.”

Morrisons reported a strong start to 2018, with like-for-like sales increasing by 3.4% during the 13 weeks to 30 April. The figure is comprised of retail sales at 3%, and wholesale at 0.4%. Total sales were up 2.8% (up 5.8% including fuel) as a result of store closures in 2017.

Commenting on the trading update, Roberts said: “This is a solid performance, especially in the current environment. The core supermarket offering continues to thrive, following Morrisons’ in-store investments and focus on British produce.”

He added: “Investors will be nervous about the growing threat from consolidation in the grocery market following the recent slew of mega mergers, with the planned deal between Sainsbury’s and Asda announced last week and Tesco and Booker earlier in the year.”

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