Morrisons delivers 3.9 per cent growth in like-for-like sales over quarter

Total sales for the period were up 4.2 per cent to £3.9bn as Bradford-based Morrisons recorded further strong growth in its convenience stores.

A total of 42 franchise stores opened in the quarter, bringing the total number of Morrisons Daily stores to more than 1,700, an increase of 120 year on year.

Morrisons said there had been successful in-store trials of new initiatives including a more focused range, improvements to Market Street and a new World Foods offer.

There has also been a further £58m of cost savings, with the initial £700m target now exceeded. Morrisons said this target was increased at Q1 (the first quarter) to £1bn by the end of FY26 (full year 2026).

The group said a partnership had been agreed with a global, market leading analytics company, to derive commercial insights from Morrisons retail data.

Rami Baitiéh, Chief Executive, said: “I’m pleased to report that Morrisons has bounced back strongly from the disruption of the Blue Yonder cyber attack in November 2024 with like-for-like sales growth of 3.9 per cent in the second quarter. “

“Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds.

"Throughout the first half we’ve worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.

“The renewal and modernisation of Morrisons continues at pace. During the period we commenced trials of a number of new in-store initiatives including a new look Market Street with Farm Shop influences and more added-value products; a new World Foods offer; and a tighter, sharper range which highlights innovation and newness across the store.

"Customer reaction has been very positive with Morrisons fresh food strengths and outstanding value shining through strongly.

Mr Baitiéh added: "We also made strong progress with the expansion of Morrisons Daily, opening 42 new franchise-owned stores in the quarter, and we see potential for hundreds more franchise-owned stores as we expand further in the growing and fragmented convenience market.

“I would like to thank all of our valued colleagues for their hard work and dedication as we continue to move forward with plans to grow and improve our business.”

Jo Goff, Chief Financial Officer said: “We’ve delivered a solid performance for Q2 (the second quarter), reflecting the broad-based progress being made across the business.

"LFL sales strengthened in the period, in what was our tenth consecutive quarter of LFL growth, with positive contributions from across the business supporting growth in underlying EBITDA (earnings before interest taxation, depreciation and amortisation) and a robust cash performance.

"In addition, we are successfully delivering further cost savings to enable us to continue to offset cost headwinds.

"Having delivered over £700m, our target has now been increased to £1bn, with the remaining savings to be delivered over the next 18 months.”