Morrisons sales rise in Q1 as it targets £700m cost-cutting drive

Morrisons has revealed that revenues rose by 3.4% to £4.7m in the first quarter of the year as it announced plans to cut costs by £700m over the next three years.

The group said the cost-cutting drive would enable further investment in lowering prices, increasing service levels, investing in loyalty and expanding the convenience footprint.

For the 13 weeks ending 29 January 2023, like-for-like sales excluding fuel have risen 0.1%. The group also opened its 500th convenience store in Salford. 

Chief executive officer, David 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.”

In May 2022, Morrisons acquired its own wholly owned convenience business, McColl’s, and now 350 former McColl’s stores are trading as Morrisons Daily with around 10 new conversions every week. 

Speaking on the recent 500th store opening, Potts said: “This is an important milestone for us and cements a leading position in the UK’s growing convenience market. Whether it’s a franchise store or a former McColl’s store, customers are responding really well to the carefully tailored Morrisons Daily fresh food convenience offer, and clearly appreciate our great value and our bright, modern store designs.  

“We expect to reach 750 Morrisons Daily stores in the autumn and the 1,000 store mark early next year.”