- First quarter underlying sales up 2.8%
- Says market is 'highly competitive'
- Watching international events closely
LONDON, March 25 (Reuters) - British supermarket group Morrisons said it was alert to the impact of the Iran war on consumer confidence and supply chains as it reported higher underlying sales growth in its first quarter.
The UK's fifth-largest grocer, owned by U.S. private equity firm Clayton, Dubilier & Rice, said on Wednesday its like-for-like sales rose 2.8% in the 13 weeks to January 25 year-on-year, having been up 2.4% in the previous quarter.
"The trading conditions we saw in Q1 have carried over into Q2 and the market remains highly competitive," CEO Rami Baitiéh said, noting that grocery market growth was lagging previous expectations.
"We are watching current international events closely, alert to the impacts on consumer confidence and supply chains, and we will continue to do what we can to mitigate effects on our customers," he said.
UK RETAIL SALES TUMBLED IN MARCH, SAYS SURVEY
The impact of the Iran war on energy prices, with knock-on effects on consumer spending, is adding to the challenges the UK retail sector faces.
British retail sales tumbled this month by the most since April 2020 when most non-food shops were closed at the start of the COVID-19 pandemic, a survey by the Confederation of British Industry showed on Tuesday.
While Morrisons' update showed improved trading performance, industry data, published earlier this month, showed its sales growth continued to underperform traditional peers Tesco and Sainsbury's as well as German-owned discounters Aldi and Lidl.
Baitiéh, CEO since 2023, is attempting to modernise Morrisons, which differs from its main rivals in that it also has its own production operations, making half of the fresh food it sells.
He has also focused on improving the group's pricing, promotions and loyalty programme.
Reporting by James Davey; editing by Sarah Young and Arun Koyyur
Source: Reuters