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Sales drop for Morrisons in first quarter

The retail chain reported a 1 per cent drop.

Morrisons posted a fall in sales, after customers switched to rival supermarket chains that are promoting more heavily.

Like for like sales, a measure which leaves out new stores, fell 1 per cent across the chain, reflecting tough comparatives after a bumper trading year last year, which included a warm Easter and the Royal Wedding.

The company said in a statesment:

"As expected, the economic environment for the consumer has remained challenging, with the high price of oil and other commodity prices putting pressure on disposable incomes. The uncertain economic background is expected to remain challenging for the consumer and accordingly the Board remains cautious."

Morrisons is ranked fifth amongst its rivals in terms of UK market share, after Tesco, Wal-Mart's, Asda and Sainsbury.  The fall in sales was in line with analyst forecasts.