Morrisons on Tuesday reported a 5.7 percent rise in group like-for-like sales in its latest quarter, with demand boosted by the country’s coronavirus lockdown but it said its costs were also higher during the pandemic.
Morrisons, Britain’s fourth largest supermarket group after Tesco, Sainsbury’s and Asda, said retail sales rose 5.1 percent in the 14 weeks to May 10, as it was helped by consumers stocking-up in late March.
But like rival store chains, Morrisons also said that the more volatile trading environment, combined with social distancing measures and a high level of staff absences meant that its operations were more costly.
The group said it continued to monitor various 2020-21 sales, profit and cash flow scenarios, but had minimal certainty or visibility around a precise outcome.
It said its best estimate is that the 2020-21 costs relating directly to COVID-19 were likely to be broadly offset by the business rates holiday from the UK government.
Industry data showed UK grocery sales hit record levels in March as shoppers stocked up ahead of the coronavirus lockdown. Growth slowed in April but was still robust as Britons made fewer shopping trips but spent more when they did venture out.
Last month Tesco estimated a hit of up to £925 million from the costs of dealing with the pandemic, while Sainsbury’s warned the impact on current year profit could be over £500 million.
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