Morrisons has reported an uptick in group like-for-like sales and an eleventh straight quarter of growth, despite the “challenging” consumer environment.
In an update for the third quarter covering the 13 weeks to July 27, 2025, Morrisons reported a 3% uptick in like-for-like sales and a 3.5% jump in total sales to £4bn.
The supermarket giant also flagged “strong performance” from its online business, with double-digit like-for-like growth in the period – making Morrisons the “fastest growing online grocery business in the market in Q3”.
Morrisons also hailed “strong momentum in new product development” with the rollout of new Fresh ranges and over 400 new products introduced this week, which it called its “biggest range reset in a decade”.
The retailer has also been investing in price, with food inflation continuing to remain high, having unveiled price cuts on 650 everyday products and new tailored promotions for customers this week.
The grocer slashed £63m of costs during the period and said it is on track to deliver £1bn of savings by the end of the 2026 financial year.
Chief executive Rami Baitiéh said: “Against a background of rising inflation and challenging macroeconomic conditions, like-for-like sales grew by 3% in our third quarter, making it our eleventh consecutive quarter of like-for-like sales growth. Our market share was stable, as it has been since the start of the year.
“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.
“In Q4, inflation has increased further and we are adapting and adjusting to make sure we continue to offer the best value − cutting prices for all customers, tailoring promotions and offering More Card customers even better rewards for their loyalty. Last week we cut prices on 650 everyday items and this week we launched over 400 new products as part of our biggest Fresh range launch for a decade. All of this will help Morrisons customers make their hard-earned money go further as we head towards the peak Christmas trading period.
“In this challenging environment, I want to pay particular tribute to our colleagues and thank them all for their continued commitment and hard work.”
Chief financial officer Jo Goff added: “We delivered a resilient performance in Q3 in tough market conditions and with significant external cost headwinds. We also made further progress with our capital structure, completing a material refinancing that further reduced gross debt and proactively extended maturities to 2031. We have now repaid a total of £2.7bn of debt since the acquisition of the business by CD&R, bringing the current debt figure down by around 43% from £6.2bn to £3.5bn.
“As we continue to face significant cost headwinds, we are also making good progress with our cost reduction programme and remain confident of reaching our recently increased target of £1 billion in total cost savings by the end of FY26.”
- Rami Baitiéh is speaking at LIVE: Retail Week x The Grocer 2026 − find out more
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