Morrisons has today updated investors on Q3 trading for the 13 weeks ended 27 July 2025.
Key points
- Group like-for-like (LFL) sales up 3.0%
- Total sales up 3.5% to £4.0 billion
- Strong performance from Online with double-digit LFL growth in the period, making Morrisons the fastest growing online grocery business in the market in Q3
- Strong momentum in new product development, including roll-out of new Fresh ranges in store this week, with over 400 new products introduced – our biggest range reset in a decade
- Recently announced price cuts on 650 everyday items and new tailored promotions to help Morrisons customers in a period of continued food price inflation
- Further £63m of cost savings delivered in the period, and expect to achieve £1 billion
target by the end of FY26 - Successful refinancing and further £261m reduction in gross debt
Rami Baitiéh, Chief Executive, said:
“Against a background of rising inflation and challenging macroeconomic conditions like-for-like sales grew by 3.0% in our third quarter, making it our eleventh consecutive quarter of like-for-like sales growth. Our market share was stable, as it has been since the
start of the year.
“Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets, staying true to Morrisons values of providing good affordable fresh food for all. As we do this, we are also managing the incremental impact of the Autumn budget and other Government legislation, which has created significant cost headwinds, some of which were unexpected at the start of the financial year.
“In Q4 inflation has increased further and we are adapting and adjusting to make sure we continue to offer the best value – cutting prices for all customers, tailoring promotions and offering More Card customers even better rewards for their loyalty. Last week we cut prices on 650 everyday items and this week we launched over 400 new products as part of our
biggest Fresh range launch for a decade. All of this will help Morrisons customers make their hard earned money go further as we head towards the peak Christmas trading period.
“In this challenging environment I want to pay particular tribute to our colleagues and thank them all for their continued commitment and hard work.”
Jo Goff, Chief Financial Officer said:
“We delivered a resilient performance in Q3 in tough market conditions and with significant external cost headwinds. We also made further progress with our capital structure, completing a material refinancing which further reduced gross debt, and proactively
extended maturities to 2031. We have now repaid a total of £2.7 billion of debt since the acquisition of the business by CD&R, bringing the current debt figure down by around 43% from £6.2 billion to £3.5 billion.
“As we continue to face into significant cost headwinds we are also making good progress with our cost reduction programme and remain confident of reaching our recently increased target of £1 billion in total cost savings by the end of FY26.”
Comments are closed.