“While there is of course much more to do, we are making important progress”.
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Analysts at Shore Capital said that compared to the other major players Sainsbury’s food and non-food operations were “well set up for Christmas and the post peak time”.
Market leader Tesco, Wal-Mart’s Asda and Morrisons all saw sales declines – of 2.7 percent, 3.5 percent and 2.6 percent respectively – and all lost market share to the fast growing discounters.
Sainsbury is expected to publish its third-quarter results tomorrow (January 13), while Tesco will post its next trading statement on Thursday (January 14).
“We continued to cut prices in the period, driving deflation excluding fuel of 3.2 per cent, and c.7p per cent on a two year basis”.
Former Tesco executive Potts joined as chief executive in March, tasked with reviving Morrisons’ fortunes.
All four are expected to report a slide in their performance during the vital festive period, indicating the changing shopping habits and the growth of discounters Aldi and Lidl, according to the Guardian.
Morrisons said it also plans to close seven more stores, adding to 11 store closures it announced last November after first-half profits dropped 47 per cent to £126 million.
Potts said he was pleased with the improved trading performance. Waitrose has as of now uncovered a 1.4% fall in sales in the six weeks to 2 January; the upmarket food merchant said record sales in the three days before Christmas were balanced by a moderate keep running up to New Year’s Eve.
Analysts at Jefferies say this morning that the results “suggest we are at a turn” and say “the group appears in great shape to deliver from here”.
It also agreed the sale of 140 M local convenience stores last September for around £25 million to concentrate on its larger supermarkets.
Debenhams is expected to see sales edge up over Christmas when it reports trading on Tuesday as the department chain battles to turn its business around.
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Morrisons forecast full year 2015-16 underlying profit before tax to be in the range of 295-310 million pounds ($429 million-$450.24 million) before 60 million pounds of restructuring and store closure costs.
