Morrisons has announced a rise in sales as the supermarket heavyweight continues to tackle debt and sharpen its competitive edge in a challenging market.
The company achieved a 3.9 per cent increase in like-for-like sales during the second quarter, with total sales climbing 4.2 per cent to £3.9 billion, as reported by .
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first half of the year saw a jump of 7.2 per cent to £344 million.
CEO Rami Baitiéh commented on the current economic landscape: "Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds."
"Throughout the first half we've worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty."
He also noted that the grocer headquartered in Yorkshire has made a robust recovery from the Blue Yonder cyber attack that struck last November.
Morrisons targeting £1bn savings by next year
Morrisons is on the quest to carve out £1bn in cost savings as it aims to scale down the substantial debt it assumed following its acquisition by a private equity firm in 2021. The retailer has so far realised £700m in savings and is set on surpassing the £1bn threshold by the close of 2026.
As part of its austerity measures, the CD&R-owned chain shuttered over 50 cafes earlier this year, imperilling 365 jobs.
Ƶ grocers have been prioritising cost efficiencies as they wrestle with the dual pressures of escalating costs – stemming from both tax increases and rising wholesale prices – and intensified competition. Sainsbury's announced earlier this year that it would cut over 3,000 positions at its cafes, equating to two per cent of its workforce.
Tesco has earmarked a portion of its revenue to counter Asda's 'war-chest' dedicated to price reductions, leading analysts to coin the term 'trolley-wars.' This fierce rivalry among the Ƶ's supermarket behemoths is driving down prices for consumers.
