Morrisons surprises analysts with good Christmas sales - but there's still a big problem

Is Morrisons bouncing back?

Morrisons shares have rocketed by 12% after the supermarket revealed better than expected Christmas sales.

Despite analysts predicting a fall, like-for-like sales, excluding fuel, rose 0.2% in the nine weeks to 3 January, compared to the previous year.

The supermarket’s market share fell back last year to as low as 10.7%, however, it seems to have regained some ground in recent months and is back to 11% for the 12 weeks to 3 January.

Morrisons profits gif

This is likely to be extremely welcome news for Morrisons, which suffered a 52% drop in annual profit last year to £345m. This was the worst result in eight years.

Morrisons also dropped off the FTSE 100 in December after its market cap fell.

Closures

The supermarket might be bouncing back, but is still set to close a further seven mid-size stores with the loss of 680 jobs, after closing 11 stores last year and 150 of its loss-making M Localconvenience stores.

 

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