Major supermarket group Wm Morrisons has just announced a 1.3% uplift in sales for the 13 weeks to 31 October, 2010, but warns that things are set to get harder for shoppers as costs will rise in the future. Wm Morrisons, which will no doubt have all its retail insurance policies up to date, is one of the giants of the retail sector.
It may be the smallest of the big four supermarkets, but it is seen as a major barometer of retail trends. Retail insurance matters to one side, Wm Morrisons lays the blame of future cost hikes firmly at the door of increasing commodity costs. It said that further increases in such things as oil, wheat and grain will start to make an impact on UK high-street costs.
And these prices, when combined with a rise in VAT to 20% in the new year, will be a double whammy for consumers.
Wm Morrisons has followed on from another high street giant which also warned on harder times around the corner. Next said that off-the-peg clothing could shoot up by nearly 10% because of ever-increasing cotton prices.
The announcement from Wm Morrisons went on to say that it had delivered what is described as a “...another solid performance...”, although the City might have thought otherwise, marking the company’s shares down by 3% in early trading.
Retail insurance remains a priority for the supermarket group as it said that the trading environment remains difficult as the economy continues to see weak growth.
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