Morrisons has said that its IT investment is on track to help the company deliver savings of £1 billion over the next three years.
The supermarket has been carrying out a major IT infrastructure refresh with the aim of decommissioning legacy IT systems and replacing them with an “industry-leading software capability”. It has also been investing in improving its supply chain technology, such as systems for managing the warehouse and tracking stock, to enable Morrisons to become more efficient. In March, it announced its goal of cutting £1 billion of costs by 2017.
In an interim management statement today, Morrisons said: “We continue to make good progress in all our strategic initiatives. The investment we have been making in our IT infrastructure and systems is on track, providing us with the platform we need to drive cost out of our business and deliver planned savings of £1bn over the next three years.”
Morrisons reported a 4.2 percent fall in sales in the 13 weeks to 4 May, but said that its Ocado-powered, online groceries website, Morrisons.com, is “performing ahead of expectations”.
It said it will make its first online grocery deliveries in London on 12 May, and expects its online business to reach up to 50 percent of UK households by the end of the year.
The supermarket still expects its pre-tax profit to be between £325 million and £375 million for the full year.