Morrisons retail sales surge in lockdown but fuel demand drops
Morrisons retail sales jumped in the first quarter of the year due to coronavirus stockpiling, however a drop in demand for fuel hurt overall sales.
Like-for-like retail sales jumped 5.1 per cent in the 14 weeks to 10 May, driven by a 10.8 per cent surge in sales between weeks 12 and 14 of the quarter.
Group like-for-like sales excluding fuel were 5.7 per cent, however like-for-like sales including fuel dropped 3.9 per cent.
The supermarket said trading was “extremely volatile” from week to week. Retail sales dropped between weeks eight and 11 of the quarter due to coronavirus social distancing measures, such as a cap on in-store numbers.
Easter sales were also “significantly down” year on year.
Morrisons said it expects the increase in costs related to coronavirus, such as hiring more staff and implementing safety measures, to be offset by business rates relief of around £230m.
The grocer has increased its delivery capacity by more than doubling its home delivery slots through Morrisons.com and through partnerships with Amazon and Deliveroo.
The company also launched a home delivery food box service, which was initially to provide essential items for the vulnerable and self-isolating but has branched out to include boxes for VE Day and Ramadan.
Chief executive David Potts said: “We are facing unprecedented current challenges and are playing our full part to help feed the nation: working with determination, creativity and pace to serve customers as well as we possibly can.
“The professionalism, enthusiasm and resourcefulness of our frontline key worker colleagues is extraordinary and is showing Morrisons at its very best.
“I’d like to thank every single colleague: you are Morrisons most important and most valued assets and are making a vital difference to so many people and communities across Britain.”
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