By Jana Simmons
LONDON--Wm. Morrison Supermarkets PLC (MRW.LN), the U.K.'s
fourth-biggest supermarket chain, on Thursday reported a 3.6% drop
in total sales for the third quarter and reiterated its full-year
profit outlook.
Like-for-like sales were down 6.3%, or 8.0% including fuel, in
the 13 weeks to Nov. 2 and online contributed 0.7% to like for like
sales during the period. Items per basket dropped 2.4% year-on-year
and net debt was GBP2.6 billion.
The company also narrowed its full year underlying profit before
tax guidance range to 335 million pounds ($535.3 million) to GBP365
million, compared with the previously range of GBP325 million to
GBP375 million.
Morrisons recently launched a new price match and points card in
a move to tempt customers back from its budget rivals and said the
card is proving popular with customers.
The retailer's 'Match & More' card provides a price match
guarantee against Tesco, Sainsbury's and Asda, as well as German
discounters Aldi and Lidl.
The U.K.'s "big four" supermarket chains--Tesco Corp. (TESO),
Asda, part of Wal-Mart Stores Inc. (WMT), J Sainsbury PLC (SBRY.LN)
and Morrisons--have been scrambling to retain their market share
following the recent success of their German rivals. Tesco and Asda
have their own price-match schemes, but don't match against Aldi
and Lidl.
Shares closed Wednesday at 162.4 pence.
Write to Jana Simmons at jana.simmons@wsj.com
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