UK: Morrisons momentum continues over Xmas
By: just-food.com | 21 January 2010
Morrisons today (21 January) claimed it had "beat" its UK retail rivals over Christmas after posting a 6.5% rise in like-for-like sales.
The UK's fourth-largest retailer said total sales rose 10.8% during the six weeks to 3 January, thanks also to the opening of new stores.
Morrisons' like-for-like sales growth was faster than that recorded at Tesco and Sainsbury's, although each retailer was measuring sales over different dates.
A degree of uncertainty hangs over Morrisons' prospects in 2010 with the company yet to name a successor for chief executive Marc Bolland, who is set to join Marks and Spencer.
Shares in Morrisons were down 1.4% at 294.6p at 09:55 GMT this morning.
John Kershaw, an analyst at Bank of America/Merrill Lynch said the lack of news on who will follow Bolland, and with Morrisons' management "comfortable" with profit forecasts, meant there were "few immediate catalysts for the share".
However, Kershaw added: "We expect a return to more modest industry LFL growth post the festive exuberance but Morrisons should still outperform as the competition annualises the benefit of capacity exiting the non-food market.
"With likely continued relative trading and profit strength and with limited risk, for us, around the CEO vacuum/appointment, Morrisons looks to us in good shape whether in a recovering or retrenching financial market."
Sectors: Retail
Companies: Morrisons, Tesco, Sainsbury’s, Marks and Spencer
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