Following today’s release of Morrisons’ figures for the 52 weeks ending 13th October 2024; Eleanor Simpson-Gould, senior retail analyst at GlobalData, a leading data and analytics company, offers her view: “Morrisons has begun to emerge from a bleak period of meagre sales and mounting debt with a strengthened balance sheet. Total revenue rose 3.8% for the 52 weeks to 13 October 2024, boosted by an impressive result in Q4, in which the grocer’s performance looks to have outpaced Tesco and Sainsbury’s similar comparative periods. The grocer has ended the year in a far better position than its outlook implied, facing slowing like-for-like growth between Q1 and Q3 of this financial year. It reported a significant rebounding performance of 4.9% like-for-like growth in Q4 – this result was the grocer’s strongest quarter in four years. Under Rami Batieh’s leadership, Morrisons appears to be turning a corner, and its enhancements to price, product availability and store estate are paying off.
“Morrisons identified availability and its More Card loyalty scheme as key areas necessary for development earlier in this financial year and has taken decisive action to improve them. As of Q4, Morrisons reported More Card-linked sales have risen from 47% to 76% between July 2023 and January 2025. Morrisons’ aggressive price focus in FY2023/24 and the launch of price matching schemes to Aldi and Lidl in February 2024 have undoubtedly made Morrisons a more attractive destination for consumers. Morrisons must maintain this momentum and consider following suit with Sainsbury’s to introduce lower prices in its developing convenience proposition to remain competitive.
“Despite Morrisons’ increasingly positive outlook on EBITDA and performance into the new financial year, the grocery sector is heading into fresh challenges in 2025. The rise in National Insurance Contributions, coming into effect in April, has already resulted in pre-emptive cost-saving measures by the grocer. In January, Morrisons announced 200 retail people team redundancies to streamline roles and improve service levels instore. Though rising costs will be inevitable, Morrisons must be cautious not to rein in spending to the detriment of its newly recovered outlook.”
