// Morrisons reveals a slump in earnings and like-for-like sales as it faces “very subdued” consumer sentiment
// CEO David Potts: “We are doing everything we can to keep prices down for customers”
Morrisons has posted sliding sales after the supermarket was recently knocked out of the Big Four by discount rival Aldi amid “very subdued” customer sentiment during the cost-of-living crisis.
In financial results for the 13 weeks to 31 July, the supermarket posted like-for-like sales, excluding fuel, down 3.1% compared to the same period a year ago.
The grocer pointed to to “unprecedented inflationary pressures” in its food manufacturing operations while posting adjusted earnings of £177million over the 13 weeks to July 31, compared with £356m over the same period last year.
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Sales for the company’s financial year so far are down 4.9% year-on-year, but were higher once fuel prices are taken into account, following surges in petrol and diesel prices.
Earlier this week the supermarket announced it was slashing prices on 150 of its most popular items in a bid to help consumers as inflation continues to soar.
Morrisons chief executive David Potts said: “It’s clear that the cost of living crisis is starting to change customer shopping patterns in many ways,”
“The speed, scale and severity of cost and energy price increases, exacerbated by the terrible war in Ukraine, had significant impacts through the quarter, but the market is still growing and the energy price guarantee will ease pressure on consumers.”
He added: “We are doing everything we can to keep prices down for customers. I want to thank all Morrisons colleagues for their continued hard work and dedication to helping our customers through an exceptionally difficult period for UK consumers.”