Morrisons eyes convenience and online as sales drop

Morrisons: let's celebrate by DLKW Lowe
Morrisons: let's celebrate by DLKW Lowe

Morrisons has revealed plans to open convenience stores in London and launch its first ecommerce site, a wine store, following a 0.9% drop in like-for-like sales.

The supermarket chain will open its M Local convenience stores in the capital following the trial of three stores in the North of England.

Morrisons, unlike its rivals, does not offer an online grocery store, but it is becoming multichannel.

The supermarket plans to use the platform of Kiddicare, the online children’s retailer it acquired last year, to launch its first online offer, a wine ecommerce store, in the second half of next year.

Like-for-like sales for the six months ended 29 July 2012, excluding fuel and VAT, were down 0.9% for the period, compared with a 2.2% rise last year.

Turnover was up 2.3% to £8.9bn, while underlying profit was up 1% to £445m.

Pre-tax profit was £440m, down from £449m for the same period last year.

Dalton Phillips, chief executive of Morrisons said "sustained pressure on consumer spending" was to blame for its dip in sales.

He said: "We have made further good progress against our strategic objectives – the building blocks which are the foundations of the future success of our business."

Morrisons revealed its new Fresh format was now in 45 stores, with the total expected to reach more than 100 this year, while sales of its own-label brand M were up 40%.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message