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Morrisons braced for reality-check trading update Monday, 30th April 2012
Photo credit: Wm Morrisons plc
Britain’s fourth largest supermarket chain is now expected to report a dip in underlying sales growth for its first quarter, as it faces tougher competition from discounting rivals.
With the latest figures from Kantar Worldpanel showing a drop to 11.9 per cent in market share, Morrisons first quarter update on Thursday is likely to bring something of a reality check to the supermarket giant.
Experts are now forecasting negative underlying sales growth for the retailer of -1 per cent for the 12 weeks to 15 April. The supermarket is forecasted to see a marginal rise in like-for-like sales, but these will be driven by the higher cost of food.
Morrisons is likely to attribute the figures to tough comparables of last year’s royal wedding and numerous bank holidays. But analysts are now suggesting the Bradford-based retailer is also suffering from exposure to the north of the UK, and a lack of promotional activity favoured by the more competitive supermarkets such as Asda, Tesco and Sainsbury’s.