Morrisons Report an 8% Increase in Profit

MorrisonsMorrisons have reported an increase in profit from £874m to £947m in the year to 29th January 2012, which is an increase of 8%.

This is great news from the supermarket, who says that “innovative” promotions and its revamped value food has encouraged performance as they have a rise in full year sales and profit. The total turnover increased 7% to £17.7billion while store sales grew by 3.9% to £13.4billion.

Their like-for-like sales increased by 1.8% and sales from stores opened during the year contributed 2.1% of total growth.

The supermarket has also claimed that a huge 11.4million customers visit its stores each week.

Morrisons CEO, Dalton Philips, claims that 2011 was Morrison’s “best year yet” and added that shoppers were able to manage their budgets with the supermarket’s relaunch of its M Savers value range food.

Morrisons has also taken steps into ecommerce though the US fresh food business FreshDirect and through the acquisition of online baby care retailer Kiddicare. It has also opened three trial convenience stores under the M Local brand.

The CEO has also mentioned about further plans to develop Morrisons’ growing online, multichannel and convenience businesses this year. They are planning to launch this year as a test of non food ecommerce process.

Philips says, “We know that 2012 will be tough, and we will be working hard to deliver even better value for our customers. We have ambitious plans for the long term development of the business, through new supermarkets, convenience stores and the development of our multi-channel capabilities. I am confident that Morrisons will make further progress this year.”

Sir Ian Gibson, Morrisons’ chairman, also adds that the businesses “good progress” in 2011 “demonstrates that Morrisons unique offer is in tune with the needs of consumers in these uncertain times”.

It’s good to hear that businesses in the industry are doing well in these tough economic times when consumers are tightening their belts. We hope that business picks up for other people in the industry including manufacturers, suppliers, restaurants and commercial restaurant insurance providers.

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