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Bloomberg
WM Morrison Supermarkets warned that a deterioration in the geopolitical environment in Europe, rising inflation and waning consumer sentiment could hurt its sales and profit this year.
Britain’s fourth largest grocer, recently acquired by US private equity group Clayton Dubilier & Rice LLC, said “increasing inflationary pressure†has affected the wider grocery market and its own performance since February, in an investor update.
The Bradford, England-based grocer said it was unable to predict how long these tougher trading conditions would last, but that it was taking measures to try and mitigate the impact.
Families across Britain are grappling with soaring costs of everything from food to fuel, which is threatening to push inflation into double digits this year for the first time in four decades. As wages fail to keep pace, consumers are cutting back on spending, including on groceries.
Ocado Group Plc warned this month that revenue in its online grocery joint venture with Marks & Spencer Group Plc may grow less than expected amid rising energy costs.
It said the joint venture is starting to cut costs across the business as first-quarter sales dropped 5.7%.