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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Morrisons to open four new stores in bid to boost sales after another £27m Covid hit

Big Four grocer Morrisons has revealed plans to open four new stores over the next 12 months in a bid to help ramp up sales after reporting another £27million loss due to Covid.

The company said it plans to open two new stores in Kirkby and Chelmsford and two temporary replacement stores in Camden and Little Clacton this year.

Morrisons, the UK's fourth largest supermarket chain, said like-for-like sales, excluding fuel, rose 2.7% in the first quarter of its financial year to 9 May when compared to the same period of 2020.

In the 14 weeks to May 9, online sales also grew 113% as lockdown restrictions continued across England.

Nevertheless, the chain described its sales performance as "robust" against last year (Bloomberg/Getty Images)

The group also enjoyed strong growth in its wholesale division - up 21% - thanks to a new partnership with McColl's convenience stores, where Morrisons supplied products to 230 extra sites in recent weeks.

Around 1.1% of the like-for-like growth came from the wholesale business, with the rest from its stores.

With fuel sales included, which bosses said were almost back to pre-pandemic levels, Morrisons saw a 5.3% jump as more motorists returned to the roads with lockdown restrictions easing.

But prior to the easing of lockdowns, the supermarket revealed it had to spend an extra £27million in Covid-19 costs during the past three months to cover for staff absences and store marshals.

Chief executive David Potts said: "The pandemic is not yet over, but it is in retreat across Britain and there is much to be positive about as something approaching normal life begins to take shape.

"Our forecourts are getting busier, we are seeing encouraging recent signs of a strong rebound of food-to-go, take-away counters and salad bars, and our popular cafes will soon fully reopen.

"The nation has a summer of socialising and sport to look forward to and we'll all be able to rediscover the joys of meeting up and eating well together."

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