UK: Cost cuts buoy Morrisons as sales slow
UK grocer Morrisons has seen first-half profits almost double as a company revamp helped to boost margins and cut costs.
The UK's fourth-largest retailer by sales posted a 61% leap in operating profit to GBP263.9m (US$530m) for the six months to 29 July.
The jump in profits came as Morrisons brought in an "optimisation plan", a programme to boost sales and rebrand the business. Turnover, meanwhile, inched up 2.8% to GBP6bn.
Chief executive Marc Bolland said: "We have made a strong start to our objective of becoming the food specialist for everyone with a positive customer response to our rebranding and the many developments in store."
Like-for-like sales rose 2.7%; Morrisons said UK grocery sales had experienced a slowdown in recent weeks. Rising interest rates and a wet UK summer had seen the UK's largest retailers 0 including Morrisons - embark on a price war.
"While the trend of greater emphasis on the health, provenance, quality and freshness of food seen in 2006 continues, in a tighter economy this has inevitably been balanced somewhat by hard-hitting price led campaigns," Morrisons said. "We expect these to continue."
Sir Stuart Rose is seen as the man who saved Marks & Spencer, one of the flagship names in UK retail. His achievements even helped him become a knight of the realm in the New Year. However, this year,...
Morrisons chief executive Marc Bolland has spoken of his reluctance for the UK grocer to move into online retailing....
Morrisons, the UK's fourth-largest grocer, has seen its annual profits almost double in a year in which the company gained ground on its rivals....
A reduction in the number of milk processors in the UK would improve margins among the companies and boost returns to farmers, a study has claimed....
Marine Harvest is continuing with its investigations into the Scottish salmon withdrawals as yet another supermarket is forced to recall its stock....
More salmon products have been withdrawn by Tesco and Costco in the UK, the Food Standards Agency has reported today (19 February)....
Competition among the UK's largest food retailers looks set to intensify after the publication of a two-year investigation into the country's grocery sector....
The UK's leading supermarket chains have withdrawn further Scottish salmon products due to a risk of white spirit taint, resulting in an unpleasant taste....
- 2017: three major drivers of M&A strategy
- just-food 2017 Survey - your thoughts on growth
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Could BRF's Turkey move pave way for OneFoods IPO?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Ferrero insists Nutella not pulled from shelves
- Lindt sees FY sales acceleration on Europe growth
- Unilever sets packaging target