Published 22nd Jun 2023, 16:53 BST

Updated 22nd Jun 2023, 16:53 BST

The Bradford-headquartered retailer reported that group like-for-like sales, excluding fuel and VAT, were up one per cent over the 13 weeks to April 30.However, total group revenues were down 0.9 per cent to £4.5bn for the quarter due to a decline in fuel sales.Private equity-owned Morrisons said it benefited from a 20 per cent increase in sales through its wholesale operations.David Potts, chief executive of Morrisons, inset, said: "Although we are still in the foothills of our new journey, we are making good progress in our plans to develop a broader, stronger Morrisons built on traditional values with modern methods."The momentum we reported in the first quarter has continued with further progress in our like-for-like sales and in our price competitiveness."Inflation remains disappointingly and stubbornly high which means that customers are still very much on a budget."But our customers still wanted to celebrate important events and this quarter included Valentine's, Mother's Day, Easter, Eid and the build-up to the coronation weekend."Through the quarter we continued with our programme of large-scale price-cutting campaigns, complemented by quick, tactical price cuts in areas where we can see the early signs of inflation easing."

Earlier this week, Morrisons slashed the prices of almost 50 items across all its UK stores and pledged to freeze the new prices for at least eight weeks.

The supermarket has reduced prices on items including mince, tomatoes and butter as well as cupboard staples such as squash and cereals. It marks Morrisons sixth round of reductions in 2023 and will see it invest £26m in the latest price cuts.

Morrisons has revealed higher grocery sales for the past quarter but warned that "inflation remains disappointingly and stubbornly high" for customers. Picture: Neil Cross

As well as cutting the prices on products, Morrisons recently relaunched its More Card loyalty programme to allow customers to collect points on fuel and selected products in store which can be converted into ‘Morrisons Fivers’ and spent in store or online.

Rachel Eyre, chief customer and marketing officer at Morrisons, said: “Providing great quality products at affordable prices for our customers is a key priority at Morrisons. Our steady flow of deep and broad price cutting programmes, together with our new More Card loyalty scheme, are helping customers save money on their weekly shop. Today’s price cuts include picnic items to help our customers make the most of the warm weather and we’ve not forgotten the fridge and cupboard essentials either.”

Last month, new sales data from NIQ revealed that Morrisons’ market share had fallen below supermarket chain Lidl.

The supermarket chain had an eight per cent share in the market in the four weeks to May 30 this year – down from an 8.8 per cent share at the same point in 2022.

In contrast, Lidl climbed to a 9.2 per cent market share, up from 8.6 per cent the previous year.

Morrisons: Supermarket reveals higher grocery sales but warns of 'stubbonly high' inflation