Morrisons wary despite sales rise

Supermarket group Morrisons has posted stronger-than-expected sales but says it remains “cautious” given the financial pressures facing shoppers.

Like-for-like sales – which strip out the impact of new stores – excluding petrol rose 2.5% from a year ago in the 13 weeks to 1 May, ahead of forecasts.

Promotional campaigns around the Easter and royal wedding weekends had boosted trade, the Bradford-based firm said.

But looking ahead it noted that economic conditions remained tough.

“The board is encouraged by the group’s progress in the first quarter but with consumers’ disposable incomes falling and an uncertain economic environment, we remain cautious,” Morrisons said.

On Wednesday, fashion retailer Next raised its annual profits forecast after saying that the recent hot weather had boosted sales at its stores.

However, Next added that it did not expect this sales lift to continue over the next few months.