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| 'Challenging trade' hits Morrisons' Christmas sales | |
| (32 minutes later) | |
| The UK's fourth largest supermarket group, Morrisons, has said its sales fell over the Christmas period amid "challenging" trading conditions. | The UK's fourth largest supermarket group, Morrisons, has said its sales fell over the Christmas period amid "challenging" trading conditions. |
| The retailer reported a 1.7% fall in like-for-like sales - which strip out the impact of new stores - excluding fuel, for the 22 weeks to 5 January. | The retailer reported a 1.7% fall in like-for-like sales - which strip out the impact of new stores - excluding fuel, for the 22 weeks to 5 January. |
| It said the "customer uncertainty of the last year was sustained". | It said the "customer uncertainty of the last year was sustained". |
| Morrisons is the first of the big four chains to report Christmas sales, with Sainsbury's and Tesco due this week. | Morrisons is the first of the big four chains to report Christmas sales, with Sainsbury's and Tesco due this week. |
| On Monday, discount chain Aldi said that its total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. | On Monday, discount chain Aldi said that its total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. |
| Sector slowdown | Sector slowdown |
| Figures from data company Nielsen indicated that UK supermarkets experienced the lowest sales growth over the Christmas period for five years. | Figures from data company Nielsen indicated that UK supermarkets experienced the lowest sales growth over the Christmas period for five years. |
| Sales grew by only 0.5% in the last four weeks, it said, with grocery sales reaching a peak at £6.2bn over the two weeks to 28 December - down 0.2% compared with the same period in 2018. | Sales grew by only 0.5% in the last four weeks, it said, with grocery sales reaching a peak at £6.2bn over the two weeks to 28 December - down 0.2% compared with the same period in 2018. |
| There were rises in sales of fresh turkey, soft drinks and confectionery, but decreases in fresh beef and fruit and vegetables. | There were rises in sales of fresh turkey, soft drinks and confectionery, but decreases in fresh beef and fruit and vegetables. |
| Reflecting on the Morrisons figures, the company's chief executive, David Potts, said: "It was encouraging that during an unusually challenging period for sales, our execution was strong and our profitability robust, demonstrating the broad-based progress we have made during the turnaround. | Reflecting on the Morrisons figures, the company's chief executive, David Potts, said: "It was encouraging that during an unusually challenging period for sales, our execution was strong and our profitability robust, demonstrating the broad-based progress we have made during the turnaround. |
| "As always, we will take some learnings into the new year and look forward to 2020 with a strong plan and solid foundations on which to continue to grow." | "As always, we will take some learnings into the new year and look forward to 2020 with a strong plan and solid foundations on which to continue to grow." |
| Morrisons said its key Christmas items were "once again very competitive", with most prices the same as or lower than in 2018. | Morrisons said its key Christmas items were "once again very competitive", with most prices the same as or lower than in 2018. |
| It added that during the trading period, four new stores were opened and four underperforming ones were closed, while it launched another 25 of its Fresh Look shops. | It added that during the trading period, four new stores were opened and four underperforming ones were closed, while it launched another 25 of its Fresh Look shops. |
| 'Fiercely competitive' | 'Fiercely competitive' |
| Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons was "outmanoeuvred" by its competitors. | Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons was "outmanoeuvred" by its competitors. |
| "Shrinking sales demonstrate the fiercely competitive food sector," he added. "Shoppers remained fixated on searching for the best value and highly price-sensitive against the backdrop of ongoing uncertainty. | "Shrinking sales demonstrate the fiercely competitive food sector," he added. "Shoppers remained fixated on searching for the best value and highly price-sensitive against the backdrop of ongoing uncertainty. |
| "Despite the pressure on margins, the industry remained stuck in a spiral of continual discounting with the depth and breadth of promotions snowballing in the run-up to Christmas. Nevertheless, a firm grip on costs offset some of the decline in sales to deliver profitability in line with previous expectations." | "Despite the pressure on margins, the industry remained stuck in a spiral of continual discounting with the depth and breadth of promotions snowballing in the run-up to Christmas. Nevertheless, a firm grip on costs offset some of the decline in sales to deliver profitability in line with previous expectations." |