Morrisons Outpaces Sainsbury's in Sales Growth for First Time in Five Years
Struggling grocer shows signs of recovery with 1.1% sales increase, surpassing rival's 0.7% growth.
Morrisons has achieved its strongest quarterly sales growth in five years, exceeding that of its potential bidder Sainsbury's for the first time since before its £7 billion private equity takeover in October 2021. The latest figures from market researchers NielsenIQ show sales at Morrisons increased by 1.1 percent in the three months to October 3. This marks a significant turnaround for the grocer, which has been struggling to regain market share lost to discounters Aldi and Lidl.
Sainsbury's, which had reportedly held merger talks with Morrisons between November 2025 and February this year, saw a 0.7 percent sales jump in the same period. Although Morrisons' overall market share remains at 8.3 percent, down slightly from 8.4 percent a year ago, the accelerated sales growth suggests its recovery strategy may be gaining traction.
Chief executive Rami Baitiéh, who took over in November 2023, stated last month that there was "clear evidence that our strategy is delivering and that we remain on track." He has implemented price cuts to combat the grocer's declining fortunes.
Despite the positive sales figures, Baitiéh acknowledged that trading conditions "remained highly competitive" amid an ongoing price war among major supermarkets. Morrisons' debt pile reached £7.5 billion last year, following its acquisition by private equity firm Clayton Dubilier & Rice (CD&R) in 2021.
Previously, Morrisons reported its strongest sales growth in a year during the World Cup period, with 3.2 percent growth in the 13 weeks leading up to July 26, attributed to hot weather and the football tournament. In August, the company launched an "unbeatable prices" pledge on over 500 everyday items, promising to match or beat prices at Aldi, Asda, Lidl, Sainsbury’s, and Tesco, which has reportedly had a positive impact.
Sainsbury's called off merger talks with Morrisons earlier this year. A potential merger would have created a grocery giant with over 22 percent of the market share, second only to Tesco's 26.3 percent. Such a deal would likely face scrutiny from competition watchdogs, potentially requiring the sale of some stores.