Morrisons experiences sales growth after cyber attack recovery

In the United Kingdom, Morrisons, the fifth-largest supermarket chain, regained its footing following a cyber attack that disrupted its operations during the Christmas trading period. The company announced a 4.2% increase in group sales, reaching £3.9 billion for the 13 weeks ending April 27. This growth marks a rebound from the slower sales seen after the November incident involving its supply chain software provider, Blue Yonder. Morrisons's Chief Executive Rami Baitieh expressed satisfaction with the company's recovery despite the challenging economic landscape. The cyber attack had led to difficulties in managing product availability and stock levels, causing a decline in sales growth for the subsequent quarter. The retailer's management noted that they were unable to track inventory for four days, which significantly affected store operations during a peak trading season. However, they have since implemented strategic investments in pricing and promotions to counteract heightened competition and consumer budget constraints. Furthermore, the company continues to pursue its comprehensive turnaround plan, which includes operational overhauls across various store formats. In March, it announced potential staffing cuts affecting 365 employees due to plans to close several cafes, convenience stores, and fresh food counters. Morrisons aims to streamline its offerings by shutting down 52 cafes, all market kitchens, multiple convenience stores, florists, meat, and fish counters, as well as pharmacies. As part of its ongoing efforts, Morrisons has also launched trial initiatives, such as a revamped Market Street section within its stores to enhance customer experience. Additionally, the retailer reported achieving £58 million in cost savings during the latest quarter, contributing to a broader objective of saving £1 billion by the end of the 2026 financial year. Despite the recovery in sales, rising inflation has created a subdued sentiment among shoppers, emphasizing the need for competitive pricing strategies to address consumer concerns regarding their budgets.