Morrisons reported stable trading for the 52 weeks to 26 October 2025 and stronger Christmas sales despite what it described as tough market conditions and external cost pressures.
In an update to investors, the UK grocer said group like-for-like (LFL) sales increased 3.4% in the six weeks ending 4 January 2026, supported by fresh food, Market Street and its manufacturing operations.
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The Best food range delivered LFL growth of 17.4% while online sales also saw strong gains.
General merchandise sales increased by 10%, and Nutmeg clothing sales were up 4.7%.
Morrisons also pointed to a Disney promotion that attracted more than one million customers, including younger families new to the brand.
For the 2024/25 financial year, full-year group LFL sales rose 2.8%, with Q4 LFL sales up 2.4%, extending its run to 12 consecutive quarters of positive LFL growth.
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By GlobalDataTotal revenue increased 3.2% to £15.8bn ($21.22bn) for the year and 3% to £3.9bn in the fourth quarter.
Underlying EBITDA from continuing operations was £835m, unchanged year-on-year, despite what the company described as largely unexpected external cost pressures.
These included an annualised £200m impact from the 2024 Budget, disruption from a cyber incident in the first quarter and higher-than-expected inflation.
Online delivered double-digit LFL growth across the year, gaining market share, while active Morrisons More Card users rose 11% to eight million.
Market share stood at 8.5% in December 2025, unchanged from January 2025.
The retailer said it strengthened its price position during the year and announced price cuts on a further 2,500 everyday items in January 2026.
Debt was reduced by 46% from its 2022 peak while in-year cost savings of £233m brought total savings to date to £845m.
Morrisons CEO Rami Baitiéh said: “2024/25 was another year of renewal and modernisation for Morrisons. In a year when consumers were feeling the squeeze, we grew like-for-like sales for a 12th consecutive quarter, maintained EBITDA and our market share, and demonstrated our resilience in the face of some tough external headwinds, from the cyber incident, rising inflation and government cost increases, which we worked hard to offset.”
In November 2025, Morrisons confirmed plans to close 145 locations across its network, including 17 convenience stores and 52 cafés, following a review that identified “areas where the costs of operations are significantly out of line with usage, volumes or the value that customers place on them”.
