Supermarket chain Morrisons admitted today that its Christmas sales were below par after feeling the heat from rivals in a "highly promotional" market.

To send a link to this page to a friend, you must be logged in.

The UK's fourth-biggest grocer, which employs around 130,000 staff at 455 stores in the UK, reported a 2.5% decline in like-for-like sales for the six weeks to December 30, a performance it labelled as disappointing.

Despite the latest drop in sales, which follows a 2.1% decline in the previous quarter, Morrisons said it remained on track to meet profit expectations.

Analysts believe Morrisons has struggled to compete because of its lack of grocery delivery service and small number of convenience stores.

Competition in the sector over the Christmas period has been as fierce as ever, with the big players focused on promotional deals and money-off coupons.

Tesco sharpened its performance after a disastrous 2011 and is likely to show a modest return to like-for-like sales growth later this week, while Sainsbury’s will also be up by about 1% in sales figures on Wednesday. Morrisons has also been squeezed by further strong growth from discounters Aldi and Lidl.

Morrisons said: “The environment over the Christmas period has continued to be challenging with hard-pressed consumers increasingly shopping to a budget and vouchering a prominent feature of a highly promotional market.”

However, the Bradford-based company admitted it has not done enough to advertise its promotions and communicate its points of difference.

Chief executive Dalton Philips recently announced an advertising deal with TV presenters Ant and Dec and sponsorship of hit shows Britain’s Got Talent and Ant & Dec’s Saturday Night Takeaway in a bid to promote the chain’s fresh food credentials.

A move into online shopping is expected later this year, while the company hopes to have 70 convenience stores by the end of 2013.

Mr Philips praised staff for achieving good availability of produce and high standards of service during the festive peak period.

However, he added: “In a difficult market our sales performance was lower than anticipated, but we have a strong business and significant opportunities to advance our strategy.”

0 comments

Comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Eastern Daily Press visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Eastern Daily Press staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Forgotten your password?

Not a member yet?

Register to create your own unique Eastern Daily Press account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

ADVERTISEMENT

ADVERTISEMENT

Most read business stories

Mary Portas Secret Shopper: Series 2 Episode 2 - Godfreys

Lowestoft department store gets the Mary Portas treatment

With a reputation as one of the toughest people in business, many stores would shudder at the thought of getting the Mary Portas treatment.

Read full story »

loading...

ADVERTISEMENT

ADVERTISEMENT