Supermarket Morrisons has reported that its sales have dropped 2.6% in the three months to November 1st, excluding fuel, in comparison to a 2.4% decrease in the prior three months.
The drop comes as the supermarket is holding back on promotional vouchers which has meant customers putting less items in their baskets.
Chief executive, David Potts, said: “Morrisons, in the middle of the market, has to be a distinctive retailer in the eyes of consumers and if you are a value proposition, which I am stating categorically we are, price is important ... Morrisons has to be itself led by customers and in doing that we will become cheaper than we were last year and are this year.”
Mr Potts added: “The business is moving at pace on the long journey towards improving the shopping trip for customers. Our priorities for the rest of the year are unchanged – to stabilise trading, reduce costs and further improve the capability of the leadership team,” he said. The group was “making good progress in many areas and customers are noticing improvements.”
Part of the improvement plans have so far included more shop-floor staff and many employees being awarded with a pay rise. However, 11 supermarkets have closed along with 140 M local convenience stores.
Figures show that customer satisfaction has increased by nine percentage points and sales via self-scan machines has risen 10%.
Analysts at Jefferies gave a positive comment, saying a “stronger Morrisons is emerging”, with recovery efforts paying off by improving the customer experience.
