Morrisons Reports Strongest Sales Growth in a Year, Fueled by World Cup and Hot Weather
The supermarket chain saw a 3.2% increase in like-for-like sales, marking a positive trend in its ongoing turnaround efforts.
Morrisons has reported its strongest sales growth in a year, with a 3.2% increase in like-for-like sales for the 13 weeks ending July 26. The supermarket chain attributed the surge to favorable weather conditions and increased shopper traffic driven by the World Cup.
Chief executive Rami Baitiéh, who took the helm in November 2023, stated that the results are "clear evidence that our strategy is delivering and that we remain on track." Baitiéh has been focused on reversing the company's fortunes, which have seen it lose market share to German discounters Aldi and Lidl, through price cuts. Despite these efforts, he acknowledged that trading conditions remain highly competitive amid an ongoing price war among major supermarkets.
Morrisons' recent performance is a notable improvement, marking its strongest quarter since the second quarter of 2025 and its fifteenth consecutive quarter of like-for-like growth. The company launched an "unbeatable prices" pledge last month on over 500 everyday products, aiming to match or beat prices at competitors like Aldi, Asda, Lidl, Sainsbury's, and Tesco. This initiative, according to the company, has already had a positive impact.
Recent figures from market researchers Worldpanel by Numerator indicate that Morrisons maintained its market share of 8.4% in the 12 weeks leading up to September 6. During this period, sales increased by 2.8% to £3.06 billion.
The supermarket, acquired by private equity firm Clayton Dubilier & Rice (CD&R) in 2021, has been facing financial challenges, with its debt pile reaching £7.5 billion last year. Jonathan de Mello, founder and CEO of retail consultancy JDM Retail, expressed a more cautious view, suggesting the results were primarily due to temporary boosts and that the company continues to underwhelm. De Mello pointed to Morrisons' lack of a distinctive offer and a weaker convenience store presence compared to rivals. He also highlighted the significant burden of the company's private equity debt, which he believes restricts investment for growth in favor of short-term cost-cutting and asset disposals.
In a related development, rival Asda, which has also experienced difficulties following its private equity takeover, recently reported its first sales increase since March 2024. Asda's sales grew by 0.1% to £4.17 billion in the 12 weeks ending September 6, with the company describing itself as being in the "foothills of recovery."