The fifth largest supermarket in the UK said similar sales rose 3.9% in the three months to early June, up from 2.1% in the previous quarter, when a cyberattack by supply chain software provider Blue Blue Yonder forced retailers to cut some items on certain items to keep shelves stockpiles.
Total sales, including new space, rose 4.2% to £3.9 billion, while EBITDA-based gains 7.2% to £344 million in the first half of the year. (Morrisons did not disclose profits before tax.)
CEO Rami Baitiéh arrived last year with a turnaround mission, saying the chain “rebounded strongly” despite “challenging the macro environment.” Since taking the helm, Baitiéh has focused on stricter in-store execution, a slim product line and fresher food displays to enhance customer perceptions – he claims to start taking on fruit.
“Value is still at the forefront of customer thinking,” he said. “We work hard on price, promotion and meaningful loyalty.”
At the heart of this drive are Morrisons more cards, which now offers deeper discounts and personalized deals designed to fight hardened food inflation with cash-bound shoppers.
Grocers are also trying out the remodeled “Market Street” section, which is combined with farm-store-style merchandise sales and the expansion of the world’s food aisle to expand its appeal. The company said early feedback was “very positive.”
Meanwhile, Morrisons is accelerating the launch of its convenience stores. The forty-two franchised Morrison Daily Stores opened this quarter, bringing the small store legacy to more than 1,700, more than 1,700 years, and more openings are planned.
Chief Financial Officer Jo Goff noted that the entire business is “based on broad advancements.” Savings measures provided £58 million in the quarter, savings totaling £700 million; by the end of 2026, retailers are now raising their savings target to £1 billion.
To improve pricing and scope decisions, Morrison also signed a new agreement with global analytics providers, hoping to see deeper business insights as competition among UK grocery stores intensifies.
Improved performance has provided some relief to owners Clayton, Dubilier & Rice, which was debt of £6.6 billion when the company privatized Morrison in 2021. While challenges remain, the latest figures suggest supermarkets are recovering momentum after the turbulent start of the year.
