Morrisons saw a 2.7% sales growth in the first quarter of 2021 attributing almost half to increased supply to convenience.

In its latest Q1 trading update, the supermarket chain reported 1.6% sales were from retail, but 1.1% came from wholesale, equivalent to a like-for-like growth of 21% due to new supply deals in the convenience sector. 

“We benefited from our broader, stronger business with wholesale adding to our supermarket and online scale,” it said.

Morrisons started to supply 230 extra McColl’s stores in recent weeks, and in March agreed to extend their partnership with the chain until January 2027. It also agreed several new supply deals, including buying group Unitas and wholesaler Blakemore.

“The pandemic is not yet over, but it is in retreat across Britain and there is much to be positive about as something approaching normal life begins to take shape,” said Morrison’s chief executive David Potts.

This sentiment is echoed in research released by analysts IGD. According to its latest Shopper Confidence Index, shopper confidence has hit its highest level in nearly five years. 

“Shoppers are choosing food for occasions that requires minimal preparation. Ready-to-eat snacks, meal deals and meal kits are likely to be a popular choice among more shoppers this summer,” said  Simon Wainwright, IGD director of Global Insight. 

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