It’s become very clear that supermarkets haven’t been able to translate a surge in business into higher profits during the pandemic.
“That’s not a criticism of how they operate, but merely a reflection of the pressures they’ve been under to keep the nation fed,” said AJ Bell’s Russ Mould.
“They’ve had to take on significant extra costs related to Covid, all while remaining calm as shoppers expect everything they want to be on the shelves or online grocery slots to be regularly available.
“Morrisons’ results are indicative of this situation. Big sales growth, higher costs, lower profits, and a cash outflow rather than inflow due to paying suppliers promptly, lower fuel sales and having to carry higher stock levels.
“If ever there was a time to judge a company on actions taken to be a responsible business, rather than simply doing anything to drive profit, it is now.
“Strategically there are some big achievements, including the fact that its partnership with Amazon is certainly going places.