Group sales rose by 2.3% in the 13 weeks to May 5th, its 14th consecutive quarter of growth. Total sales increased by 2.4%, excluding fuel.
Retail performance remained solid despite the uncertain economic and political outlook. Key to performance were its in-store bakery business, fresh produce, 'The Best' premium range and 'Naturally Wonky'.
New ranges such as Fresh Ideas, Counted and V Taste also proved popular with customers. Looking ahead, Morrisons expects Q2 to be tough as it annualises against the hot summer of 2018 and World Cup comparative.
Wholesale's contribution to growth was 2.1%, a decline from 3.2% in Q4, reflecting the conclusion of the rollout of its supply deal to most McColl's stores. During the period, wholesale benefited from the first conversions of McColl's stores to the Morrisons Daily format. 10 stores will have opened by the end of May and trading is said to have been very positive. Wholesale will receive a further boost later in the year when Morrisons begins to supply around 300 former McColl's stores.
David Potts, Chief Executive, said: “We are improving the shopping trip and becoming more competitive for customers, and are pleased with another quarter of positive like-for-like sales.”
Find out more about NFU Food Chain’s work with retailers here