Morrisons reported a 3% increase in like-for-like sales in its third quarter, extending its run of growth to 11 consecutive periods despite what it described as “significant cost headwinds.”
For the 13 weeks ending 27 July, the supermarket’s total sales rose 3.5% to £4bn, driven in part by strong performance online. The grocer highlighted double-digit growth in its digital business, which it said made it the fastest-growing online supermarket in the market during the quarter.
CEO Rami Baitiéh said Morrisons had shown a “resilient performance” despite inflation and wider economic pressures.
Baitiéh said “Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets, staying true to Morrisons values of providing good affordable fresh food for all.”
“As we do this, we are also managing the incremental impact of the Autumn budget and other Government legislation, which has created significant cost headwinds, some of which were unexpected at the start of the financial year”.
Morrisons’ latest trading update comes shortly after the retailer announced price cuts on 650 everyday items, alongside tailored promotions and enhanced loyalty rewards for More Card members.
This week, Morrisons introduced more than 400 new products, describing it as its largest fresh range reset in a decade.
“Our market share was stable [in Q3]…All of this will help Morrisons customers make their hard earned money go further as we head towards the peak Christmas trading period,” Baitiéh added, while paying tribute to store colleagues “for their continued commitment and hard work”.
The retailer also reported progress on its balance sheet, completing a refinancing that reduced gross debt by £261m during the quarter. Chief Financial Officer Jo Goff said Morrisons had now cut its total debt by 43% to £3.5bn since its acquisition by CD&R in 2021.
Goff added that the business remains on track to achieve £1bn in cost savings by the end of FY26, with £63m secured in Q3 alone. She said “We delivered a resilient performance in tough market conditions and with significant external cost headwinds.”
Morrisons is preparing for what it described as a further rise in inflation in Q4, but CEO Rami Baitiéh said the company is “adapting and adjusting” to continue delivering value through price cuts, promotions, and innovation.