Value wins shoppers
NORTH-EAST-BASED retailer Morrisons today said its value ranges had helped it bring in half a million more customers every week as hard-pressed shoppers looked to cut food bills.
The firm, which re-launched cheaper lines and slashed prices on several everyday items to 50p, said like-for-like sales excluding fuel rose 7.6% in the 26 weeks to August 3.
This improves on the 7% growth seen in the first quarter, as shoppers looked harder to find the better deals amid fierce competition in the sector.
“During the period, the slowdown in the economy inevitably led to a focus on value,” Morrisons said.
Underlying profits at the UK’s fourth biggest chain rose 19% to £295 million in the first half, in line with City forecasts.
Morrisons and Asda - as well as discounters such as Aldi and Lidl - have been the main beneficiaries so far, as shoppers are squeezed by rising bills.
Elsewhere on the high street, the news remained dismal.
The owner of Argos and DIY chain Homebase announced heavy sales falls for both businesses today.
Home Retail Group said Argos like-for-like sales were 5.8% lower in the second quarter of its financial year, covering the 13 weeks to August 30.
That compares with the flat performance seen in the previous quarter.
And Homebase same-store sales dived 8.3%, although this was better than the 12% fall reported for the first quarter.
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