Following today’s release of Morrisons Q1 figures for 2020/21,
Thomas Brereton, Retail Analyst at GlobalData, a leading data and analytics company, comments:
‘‘Morrisons’ results tell a mostly familiar story in line with the other major supermarkets; food sales rose quickly to peak in late March as UK case numbers grew and stockpiling began and fell in April due to a tough Easter comparative. But the results also shed light on most recent activity, with retail contribution to l-f-l sales rising to 9.6% for the final two week of the period (27th April – 10th May), suggesting that volatility remains high and that a return to more normal grocery conditions remains far off.
As COVID-19 continues to upend the food industry, Morrisons has adapted to new shopping trends in the UK in line with competitors, quickly implementing now common supermarket processes (such as limiteding store occupancy and raising contactless payment limit). Morrisons stands out for its more empathetic initiatives, such as offering a minimum 6% annual bonus for all employees and instore discounts for farmer suppliers and NHS workers – enterprises that will serve it well in the long-term as supermarkets continue to play a pivotal role in the UK’s response to the crisis.
Morrisons is well-placed to ride out the worst of the coronavirus outbreak long-term. Given the ongoing economic impact of COVID-19 on non-UK countries, global food prices are forecast to rise considerably in 2021; however, Morrisons’ integrated UK supply chain will help shield it from any unexpected foreign inflation. Furthermore, it’s extended partnerships with Deliveroo (rapid delivery from 130 stores) and Amazon (increasing national coverage of its store on Prime Now to 90% of postcodes) increases its stability as grocery home delivery continues to blossom (forecast to grow 25.5% in 2020).”