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New shoppers push Morrisons sales | New shoppers push Morrisons sales |
(20 minutes later) | |
Supermarket chain Morrisons has seen its sales rise and says more than 700,000 new shoppers are visiting its stores each week. | Supermarket chain Morrisons has seen its sales rise and says more than 700,000 new shoppers are visiting its stores each week. |
The store said like-for-like sales, excluding new stores and fuel, rose 8.1% in the 13 weeks to 2 November. | The store said like-for-like sales, excluding new stores and fuel, rose 8.1% in the 13 weeks to 2 November. |
Chief executive Marc Bolland said more shopper were choosing Morrisons in the "challenging economic environment". | Chief executive Marc Bolland said more shopper were choosing Morrisons in the "challenging economic environment". |
Morrisons also said it had agreed to buy 38 stores from the Co-operative Group for £223m ($328m). | Morrisons also said it had agreed to buy 38 stores from the Co-operative Group for £223m ($328m). |
In a statement Morrison said "the economic environment is difficult and will remain challenging," but said that its financial expectations for the current year remained unchanged. | |
Sales rise | |
The deal with the Co-op, which has been required by regulators to sell some of its shops after its purchase of Somerfield earlier this year, would also lead to £98m of acquisition, integration and refurbishment costs, Morrisons said. | |
"The acquisition is conditional upon a successful completion of the Co-operative Group's acquisition of Somerfield and certain competition approvals," it said in a statement. | |
The firm has been increasing its market share this year, helped by its image as a lower-priced alternative to many of its rivals as shoppers cut back on spending in the economic downturn. | |
Morrison's latest rise in sales has outperformed those of its rivals. On Tuesday, Tesco reported a 2% rise in quarterly sales, Asda's quarterly sales rose 6.9% while Sainsbury's sales were up 4.3%. | |
According to figures from research firm TNS, in the 12 weeks to 2 November Morrisons had a 11.4% share of the UK supermarket sector. | |
Morrison also announced £403m of investments and said, as a result, it would suspend its £1bn share buyback programme, pending a further update in March 2009. |
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