Morrisons Reports 3.9% Sales Growth, Expands Daily Stores Amid Cost Cuts

Morrisons has reported a strong recovery from the Blue Yonder cyberattack in November 2024, with like-for-like sales rising 3.9% in the second quarter and total sales increasing by 4.2% to £3.9 billion. CEO Rami Baitiéh highlighted the company's focus on value for customers amid subdued consumer sentiment driven by inflation, supported by price adjustments, promotions, and loyalty rewards. The supermarket is pursuing a major store overhaul through its Morrisons Magic strategy, including a revamp of Market Street to offer a more premium, farm shop-style fresh food selection and a new World Foods range, with successful trials already underway. As part of cost-saving measures, Morrisons has closed numerous cafés, market kitchens, convenience stores, florists, meat and fish counters, and pharmacies, surpassing its initial £700 million savings target and raising it to £1 billion by the end of FY26. The expansion of Morrisons Daily convenience stores continues, with 42 new franchise stores opened in the quarter, bringing the total to over 1,700. Despite a challenging macroeconomic environment and rising UK food prices, Morrisons remains optimistic about its growth prospects and ongoing modernization efforts.