Morrisons ‘alert’ to impact of Middle East conflict on customers

Morrisons has said it is “alert” to the impact of the Iran war on consumer confidence and its supply chain after reporting stronger recent sales.

The supermarket group said it is “tough for customers right now” and committed to further investment in pricing to support shoppers.

Boss Rami Baitieh said the business is assessing how shopping habits and the supply of products might be affected by the conflict in the Middle East.

He said: “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.”

The business revealed sales grew over the past three months, driven by a “much-improved Christmas” performance.

The Bradford-based retailer said total sales rose 2.6% to £4.1 billion for the 13 weeks to January 25, compared with a year earlier.

Group like-for-like sales were 2.8% year-on-year, it said.

Morrisons said it saw sales volumes grow on the back of “investment in lower prices” amid a period of intense competition between UK grocers.

Under the leadership of Mr Baitieh, the retailer has sought to fight off pressure from discount rivals Aldi and Lidl, as well as price-focused strategies from other major grocers including Tesco, Sainsbury’s and Asda.

The retailer said it delivered £49 million of cost savings during the quarter as it continues a transformation programme.

Mr Baitieh, chief executive of the business, said: “Against a highly competitive backdrop, with grocery market growth lagging previous expectations, we achieved our targets in Q1, delivering our 13th quarter of like-for-like sales growth.

“We know it’s tough for customers right now and we’re doing everything we can to offer them better value and give them more reasons to shop at Morrisons.

“That means continuing to invest in price, promotions and loyalty, concentrating on driving value where it matters most for our customers.”