Q1 likeforlike sales up 0.1
Total sales up 3.4
Targeting 700 mln stg of cost savings

LONDON, March 30 Reuters British supermarket group Morrisons returned to underlying sales growth in its latest quarter, saying it was benefiting from a push to improve its price competitiveness.

Morrisons, owned since 2021 by U.S. private equity firm Clayton, Dubilier Rice, also said on Thursday it was targeting 700 million pounds 867 million of cost savings over the next three years, enabling it to further invest in its loyalty programme, grow its convenience store business and mitigate the cost headwinds it faces.

Monthly industry data has consistently shown the group underperforming rivals, including market leader Tesco and No. 2 Sainsbury39;s and last year it was overtaken as Britain39;s fourthlargest grocer by market share by Germanowned discounter Aldi, according to researcher Kantar.

But Chief Executive David Potts said a drive to become more competitive on key products was starting to work.

Momentum in the business is now building with an improving trajectory over the last three quarters, he said.

Morrisons39; likeforlike sales, excluding fuel and VAT sales tax, rose 0.1 in the 13 weeks to Jan. 29, its fiscal first quarter.

The small rise masks a drop in volumes when accounting for inflation.

Total revenue was up 3.4 to 4.71 billion pounds.

Our market share has stabilised, our inflation rate is below our peers, and Morrisons39; traditional competitiveness, colour…