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Morrisons hails ‘renaissance of the supermarket’ as more people cook at home

by All News Admin
May 11, 2021
in Business
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Morrisons has hailed the “renaissance of the grocery store” because it reported robust gross sales throughout the newest coronavirus lockdown.

The UK’s fourth-largest grocery chain mentioned extra individuals cooking meals at dwelling had helped gross sales, which grew 2.7 per cent within the 14 weeks to 9 Could. On-line gross sales, together with Morrisons’ partnership with Amazon, greater than doubled in comparison with the identical interval final yr.

Morrisons mentioned it had seen vital progress in gross sales of snacks and takeaway meals in latest weeks because the economic system has begun to reopen.

“The pandemic is just not but over, however it’s in retreat throughout Britain and there may be a lot to be optimistic about as one thing approaching regular life begins to take form,” mentioned Morrisons boss David Potts.

“Our forecourts are getting busier, we’re seeing encouraging latest indicators of a robust rebound of food-to-go, takeaway counters and salad bars, and our widespread cafes will quickly absolutely reopen.”

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Earlier than restrictions had been eased, Morrisons spent an additional £27m on Covid-19 prices equivalent to retailer marshals and protecting employees absences.

Gross sales in Morrisons’ wholesale division jumped 21 per cent because of a brand new partnership with McColl’s comfort shops, the place Morrisons provided merchandise to 230 further websites over the last three months.

Round 1.1 per cent of Morrisons’ total like-for-like gross sales progress got here from the wholesale enterprise, with the remaining from its shops.

Gas gross sales returned to shut to pre-pandemic ranges as motorists made extra journeys, Morrisons mentioned.

Mr Potts added: “The nation has a summer season of socialising and sport to look ahead to and we’ll all have the ability to rediscover the fun of assembly up and consuming effectively collectively.”

Analysts questioned whether or not Morrisons may preserve its robust gross sales efficiency as life begins to return to regular and other people enterprise out of their properties extra.

Morrisons dangers being caught within the “squeezed center” between low cost chains like Aldi and extra upmarket rivals, mentioned Ross Hindle of analysis firm Third Bridge.

“Morrisons continues to foster its relationship with Amazon, triggering a lot hypothesis a few full-blown acquisition by Amazon within the close to future,” he mentioned.



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