UK supermarket Morrisons reported an improvement in underlying sales growth in its first quarter of 2025/2026 and said it is monitoring “current international events” for potential effects on shoppers and supply chains.
In the trading update for the quarter that ended 25 January, the company said its like-for-like (LfL) sales increased 2.8%.
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Total sales during the 13-week period were up 2.6% to £4.1bn ($5.48bn).
Morrisons CEO Rami Baitiéh said: “Against a highly competitive backdrop, with grocery market growth lagging previous expectations, we achieved our targets in Q1, delivering our 13th quarter of LfL sales growth.
“We know it is tough for customers right now, and we’re doing everything we can to offer them better value and give them more reasons to shop at Morrisons. That means continuing to invest in price, promotions and loyalty, concentrating on driving value where it matters most for our customers.”
Morrisons said it performed well around seasonal trading periods, including what it described as “much improved” Christmas.
The company added that its price index has continued to improve, with lower pricing on key products generating immediate volume gains.
It also pointed to record redemption rates from personalised loyalty offers, as well as growth in its online business and an improvement in online market share compared with the same period a year earlier.
On costs, Morrisons said it delivered a further £49m of savings during the quarter, bringing total savings since the programme began to £894m.
Baitiéh said trading conditions seen in the first quarter continued into the second quarter and described the market as highly competitive.
He added: “Our success in key seasonal events has created some momentum, and having delivered pleasing performances at Valentine’s Day and Mother’s Day, we are now looking forward to Easter.
“We are watching current international events closely, alert to the impacts on consumer confidence and supply chains, and we will continue to do what we can to mitigate effects on our customers.”
The update follows the latest Confederation of British Industry Distributive Trades Survey, which showed UK retail sales volumes fell sharply in the year to March, marking the fastest decline since April 2020.
The survey also suggested weakness may extend into April, with retailers expecting another notable fall in sales.
