High levels of promotional activity impact sales at Morrisons in third quarter

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Morrisons: fall in same store sales

Morrisons: fall in same store sales

Fragile consumer confidence and high levels of promotional activity in the grocery market have impacted sales at Morrisons in the third quarter.

Like-for-like sales, excluding fuel, in the 13 weeks to 28 October 2012 fell by 2.1%.

Total sales, as revealed in the latest Kantar Worldpanel data on Retail TImes on 6 November 2012, were down 0.4% in the quarter.

Morrisons has also announced commercial director Richard Hodgson is leaving the day-to-day business. Hodgson will be replaced by corporate services director Martyn Jones on an interim basis.

During the period Morrisons introduced its new Fresh Format into a further 35 stores and said it is on track to extend this to 100 stores by the end of the financial year.  

Its own brand relaunch is reported to be progressing well and will extend to 10,000 products in total. The supermarket also launched an online wine operation, Morrisons Cellar, in the quarter. 

Morrions said it was focused on improving its performance, particularly in the communication of its key points of difference to customers and improving the effectiveness of its promotional activity. 

However, it expects the market to remain challenging for the remainder of the year.