Morrisons has posted a solid festive performance, with group like-for-like (LFL) sales up 3.4 per cent in the six weeks to 4 January 2026, as fresh food and premium ranges drove growth in a highly competitive market.
Updating investors on results for the 52 weeks ending 26 October 2025, the grocer said full-year group LFL sales rose 2.8 per cent, marking 12 consecutive quarters of positive LFL sales growth. Total revenue increased 3.2 per cent to £15.8 billoin, while Q4 revenue rose 3.0 per cent to £3.9bn.
Morrisons said its Christmas performance was led by fresh food, supported by Market Street counters and its manufacturing business, while its premium The Best range delivered an “excellent” Christmas, up 17.4 per cent.
The retailer also reported “good growth” in online, with online delivering double-digit LFL growth across the year, gaining market share.
Meanwhile, general merchandise delivered a market-beating performance during the festive period, up 10.0 per cent, while Nutmeg clothing rose 4.7 per cent. A festive Disney promotion was highlighted as a major success, with more than one million customers taking part, including “younger families new to the Morrisons brand”.
Morrisons said it made a further improvement in its price position during the year and announced price cuts on an additional 2,500 everyday items in January 2026, as it seeks to protect volumes in a value-driven market.
Chief executive Rami Baitiéh said FY24/25 had been “another year of renewal and modernisation” and pointed to resilience despite several pressures.
“In a year when consumers were feeling the squeeze, we grew like-for-like sales for a twelfth consecutive quarter, maintained EBITDA and our market share, and demonstrated our resilience in the face of some tough external headwinds,” he said, citing a cyber incident in Q1, rising inflation and government cost increases.
Underlying EBITDA from continuing operations was held flat at £835m, despite “largely unexpected” cost headwinds from the 2024 Budget, which Morrisons said represented an annualised cost of £200m.
CFO Jo Goff said the business offset pressures through an ongoing cost reduction programme, delivering £233m of savings in the year and taking total savings to £845m to date. Morrisons expects to exceed its £1bn savings target by the end of FY26.
The grocer also reported continued deleveraging, cutting gross debt by 10 per cent during the year, with net debt down 46 per cent from its 2022 peak. Market share was stable at 8.5 per cent in December 2025, level with January 2025.