The UK’s fifth‑largest supermarket said like‑for‑like sales grew 3.9 per cent in the three months to early June, up from 2.1 per cent in the previous quarter, when a cyberattack on supply‑chain software provider Blue Yonder forced the retailer to slash prices on some items to keep shelves stocked.
Including new space, total sales rose 4.2 per cent to £3.9 billion, while underlying EBITDA for the first half climbed 7.2 per cent to £344 million. (Morrisons does not disclose pre‑tax profit.)
Chief executive Rami Baitiéh, who arrived last year with a turnaround mandate, said the chain had “bounced back strongly” despite a “challenging macro environment”. Since taking the helm, Baitiéh has focused on tighter in‑store execution, a slimmer product range and fresher food displays to improve customer perception—efforts he claims are starting to bear fruit.
“Value remains at the forefront of customers’ minds,” he said. “We’ve worked hard on price, promotions and meaningful rewards for loyalty.”
Central to that push is the Morrisons More Card, which now offers deeper discounts and personalised deals aimed at cash‑strapped shoppers battling stubborn food inflation.
The grocer is also trialling revamped “market street” sections—complete with farm‑shop‑style merchandising and expanded world‑foods aisles—to broaden its appeal. Early feedback, the company said, has been “very positive”.
Meanwhile, Morrisons is accelerating its convenience‑store rollout. Forty‑two franchise‑owned Morrisons Daily outlets opened during the quarter, taking the estate of small‑format stores to more than 1,700, up 120 year‑on‑year, with more openings planned.
Chief financial officer Jo Goff pointed to “broad‑based progress” across the business. Cost‑saving measures delivered £58 million in the quarter, taking cumulative savings to £700 million; the retailer has now raised its savings target to £1 billion by the end of 2026.
To sharpen pricing and range decisions, Morrisons has also signed a new deal with a global analytics provider, hoping to mine deeper commercial insights as competition among UK grocers intensifies.
The improved performance offers some relief to owners Clayton, Dubilier & Rice, which loaded the company with £6.6 billion of debt when it took Morrisons private in 2021. Although challenges remain, the latest figures suggest the supermarket is regaining momentum after a turbulent start to the year.