Morrisons, the UK's sixth-largest grocer, reported an accelerated underlying like-for-like sales growth of 3.2% in the 13 weeks to July 26, up from 2.2% in the prior quarter. Total sales reached $4.1 billion. This growth was attributed to the summer's record temperatures and the World Cup, which encouraged increased shopping frequency, as well as the supermarket's sharpened pricing strategy in a highly competitive market.
The private equity-owned grocer also highlighted its cost-cutting regime, which has generated $995 million in savings since March 2023, with $53 million saved in the last quarter alone. These savings are helping Morrisons to reduce its net debt and offset rising supply costs influenced by the war in Iran. The company's CEO, Rami Batiéh, noted a "broad-based improvement" across the business, including supermarkets, online, convenience, pharmacy, and Myton manufacturing units.
Morrisons' sales growth marked its fifteenth consecutive quarter of growth. The company has also focused on value for customers, launching an "Unbeatables price promise" to match competitors on essential products. Additionally, Morrisons plans to accelerate the expansion of its Morrisons Daily convenience arm, having opened 71 new stores this year with plans for hundreds more, while closing unprofitable McColl’s convenience stores. Despite significant debt, the group aims to reduce it further, having cut it by 46% since 2022 and maintaining freehold rights to most of its supermarket estate.
Overall, the UK grocery market saw sales accelerate by 3.3% in the four weeks to July 12, with grocery inflation easing to 2.6%. This period saw 497 million trips to grocery stores, the highest since March 2020, driven by the heatwave and sports events. While value remains crucial for shoppers, branded products saw stronger growth (5.5%) compared to private label (4.0%) for the first time since summer 2025, particularly in categories like soft drinks, confectionary, and ice cream. Convenience shopping also increased significantly, with an additional seven million trips year-on-year.
