Morrisons has reported total sales of GBP 8.49 billion for H1 2013, a decrease of 4.92% for 26 weeks period ended 3rd August 2014.

  • Total sales of goods in stores and online decreased 4.4% to GBP 6.45 billion from GBP 6.75 billion as compared to H1 2013.
  • Like-for-like (LFL) sales (ex-VAT, ex fuel) decreased 7.4% including online contribution of an increase of 0.4%.
  • Like-for-Like Items per Basket decreased 3.2%
  • Fuel sales decreased 7.9% to GBP 1.90 billion from GBP 2.06 for the same period.
  • Underlying Net profit decreased 31.4% to GBP 183 million from GBP 267 million.
  • Operating Profit totaled GBP 287 million compared to GBP 381 million, a decrease of 24.7% compared to last year.
  • During the H1 2014, the retailer opened four new supermarkets and 17 M Local convenience stores taking the convenience store count to 119.
  • The retailer has cut down the prices of 1,200 owned and branded items during June 2014 and expects to expand the price cuts to its produce and meat lines as well.
  • It has removed trolley locks completely and has extended store opening hours in its 230 stores.
  • The number of weekly items on promotions fell by 9% in H1 2014 and 13% in Q2 2014.

 FY 2014 Guidance

  • Expects to open about 60 to 70 M Local locations in FY 2014 and expects to open about 100 locations in the next fiscal.
  • The retailer expects to add about 540,000 square feet of new space during FY 2014 targeting a 2.7% increase in total sales from the new space to be added.
  • Capital expenditure has decreased to  GBP 257 million compared to GBP 561 million in H1 2013 due to shift in focus to expand online presence rather than store expansion.
  • Targets GBP 200 million of online sales and expects to cover 50% of UK households by FY 2014 end.