Covid-19: Morrisons increases like-for-like sales following expansion of home delivery

Morrisons has reported a like-for-like (LFL) sales increase of 5.7% during the 14-week period from 3 February to 10 May, despite the “highly volatile” market conditions as a result of the Covid-19 crisis. This is partly due to the huge expansion of the grocer’s eCommerce capacity, which has more than doubled in the period.

In a Q1 trading update published today, Morrisons said its weekly home delivery slots had exceeded the 60% increase it had originally planned for. This has largely been achieved through its partnerships with other delivery services. This includes substantially increasing the number of pick-up stores in conjunction with Ocado, and its partnership with Deliveroo, which enables essential items to be delivered to vulnerable customers in as little as under 30 minutes. Morrisons also announced yesterday that it had extended its online delivery service via Amazon Prime.

The retailer added it will be offering click & collect pick-up from almost 280 Morrisons stores by mid-June following a trial of six stores in March.

Morrisons 5.7% LFL sales growth was comprised of 5.1% from retail and 0.6% from wholesale during the quarter. This was despite a number of peaks and troughs in individual weeks due to Covid-19, which included significant stocking up and weak Easter trading before substantial improvement in recent weeks.

David Potts, chief executive at Morrisons, commented: “We are facing the unprecedented current challenges and are playing our full part to help feed the nation: working with determination, creativity and pace to serve customers as well as we possibly can.

“The professionalism, enthusiasm and resourcefulness of our frontline key worker colleagues is extraordinary and is showing Morrisons at its very best. I’d like to thank every single colleague: you are Morrisons most important and most valued assets and are making a vital difference to so many people and communities across Britain.”

The retailer confirmed it remains in a strong position to continue responding to the ongoing crisis, operating from a robust financial position.