Morrisons has returned to quarterly sales growth for the first time in two years.
The supermarket chain, which was bought by private equity giant Clayton, Dubilier & Rice in 2021, reported a 0.1 per cent rise, excluding fuel and VAT, in the 13 weeks to January 29 – the first growth since January 2021.
But with food price inflation at a 45-year high of 18 per cent, sales by volume remain firmly lower.
Struggle: Morrisons, which was bought by private equity giant Clayton, Dubilier & Rice in 2021, reported a 0.1% rise in sales in the 13 weeks to January 29 – the first growth since January 2021
Morrisons chief executive David Potts said: ‘We still have plenty of work to do but momentum in is now building with an improving trajectory over the last three quarters and like-for-like sales now in positive territory.’
It said its price inflation was ‘below our peers’, but declined to give a figure. Morrisons put its improving performance down to a focus on promotions, having announced a £25million price cut programme last month.
The group has been overtaken by rival Aldi as the UK’s fourth-largest supermarket and earnings tumbled 15 per cent as sales fell by 4.2 per cent in the year to October.
Credit rating agency Moody’s cautioned that Morrisons’ ability to repay roughly £7.5billion of debts had moved to ‘negative’ from stable, and cut its rating.
But it has been investing heavily in prices and the McColl’s convenience stores it bought out of administration last year to help turn around its fortunes.
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