Morrisons posts strong Christmas sales as annual earnings hold steady

Morrisons has recorded improved sales growth over the Christmas trading period, as the supermarket delivered stable full-year results despite a challenging retail environment.

Group like-for-like sales rose 3.4% in the six weeks to 4 January 2026, driven by fresh food, premium ranges and online growth. The company said trading over Christmas 2025 was competitive but delivered a “good performance”.

For the 52 weeks to 26 October 2025, Morrisons reported full-year like-for-like sales growth of 2.8%, marking its 12th consecutive quarter of positive growth. 

Total revenue rose 3.2% to £15.8bn, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were maintained at £835m.

Fourth-quarter like-for-like sales increased 2.4%, with revenue up 3.0% to £3.9bn. Market share was stable at 8.5% in December 2025, in line with January 2025.

The group stated that its premium The Best range performed strongly over Christmas, with sales up 17.4%, while general merchandise and Nutmeg clothing recorded growth of 10.0% and 4.7% respectively. 

Online sales delivered double-digit like-for-like growth over the year, increasing market share.

The group also highlighted growth in its Morrisons More Card loyalty scheme, with active users rising 11% to a record eight million.

The retailer said it faced “significant and largely unexpected” cost pressures during the year, including higher inflation, the impact of the 2024 Budget and a cyber incident in the first quarter. 

These headwinds were partially offset by cost savings of £233m during the year, taking total savings since the start of the programme to £845m.

Morrisons announced further price cuts on 2,500 everyday items in January 2026, as it seeks to strengthen its price position in the year ahead.

Rami Baitiéh, chief executive, said: “2024/25 was another year of renewal and modernisation for Morrisons. In a year when consumers were feeling the squeeze, we grew like-for-like sales for a 12th consecutive quarter, maintained EBITDA and our market share, and demonstrated our resilience in the face of some tough external headwinds, from the cyber incident, rising inflation and government cost increases, which we worked hard to offset. 

“In Q4 we also made the changes and investments in prices, promotions and loyalty that laid the foundations for more robust momentum in the first quarter of the new financial year. We had a good Christmas in 2025, providing a solid foundation for the first quarter. As we enter 2026, the grocery market remains competitive and we are committed to our focus on delivering good value and keeping prices low for customers, announcing a further 2,500 price cuts at the start of January.”

He added: “I would like to thank all of our colleagues, farmers and suppliers for everything they do for Morrisons, their commitment and diligence is the foundation for the progress we are making.”