Morrisons reaffirms focus on ‘value triangle’ amid sales boost

Morrisons claims a continued focus on better prices, loyalty and promotions – the “value triangle” – helped the supermarket drive sales in 2025. 

In its results for the 52 weeks ending October 2025, Morrisons reported full year group like-for-like sales rose 2.8%, with Q4 sales up 2.4%. The supermarket’s full year total revenue increased 3.2% to £15.8bn, with Q4 total revenue rising 3% to £3.9bn.

In a call with media today (21 January), CEO Rami Baitiéh said the team had “focused hard” on improving the value proposition to ensure Morrisons offers customers “good, honest value across their shop every day”.

The trading plan has been built around the “value triangle of price, loyalty and promotion when every penny counts”, the CEO claimed, acknowledging “affordability and price competitiveness really matter”.

He described the year as one of “progress” for the grocer, as it continued to “renew and modernise against the backdrop of more challenging conditions”. Shoppers came to Morrisons “more frequently with smaller baskets”, taking time to “look around” in search of value.

Shoppers favour premium own brand as festive sales exceed £1bn

As part of its continued strategy to use its “unique, vertically integrated model to win” – particularly with fresh food – Morrisons will continue to develop its Market Street proposition, leaning into own brand and looking to develop its “differentiation in the market”.

For the Christmas period specifically, the grocer reported group like-for-like sales rose 3.4% in the six weeks to 4 January 2026, supported by sales of fresh food and an “excellent Christmas” for its The Best premium range, up 17.4%.

Morrisons also highlighted 10% growth in general merchandise and a 4.7% sales uptick across the Nutmeg clothing range, as well as its Disney trading card reward scheme. The latter engaged 1 million customers, including younger families new to the Morrisons brand.

Over Christmas, the grocer also cut the price of some British vegetables to just 5p for Morrison More Card customers, with Baitiéh claiming fresh food was a “key driver” of festive performance.

However, despite the sales growth rival Lidl is close to overtaking Morrisons’ market share. According to data from Worldpanel by Numerator over Christmas, Lidl notched up the biggest market share growth among the supermarkets, registering a 0.5 percentage point gain on last year. This gives Lidl 7.8% of the market – sixth place behind Morrisons. Morrisons market share stands at 8.5% (level with January 2025), with sales up 2.6%.

According to Baitiéh, the Worldpanel data doesn’t “take fully the market share from convenience” – an area Morrisons is investing in – and looks instead at like-for-like sales across the “structural supermarket” business.

Continued value focus

Elsewhere, the grocer called out its strong performance online, “growing ahead of the market and increasing market share”, with the CEO crediting Morrisons’ tie-ups with Just Eat, Uber Eats and Amazon, as well as the launch of its own same day delivery service.

For the full year, More Card active users also rose 11% to a record 8 million, up from 5 million in 2023. The supermarket plans to “introduce some even more generous and compelling loyalty offers this year”. The intention is to increase personalisation to appeal to More Card customers.

“Link sales were 81% and swipe rate was 67%, up by seven percentage points year-on-year to reach their highest level ever,” added Baitiéh.

Looking ahead, Morrisons is maintaining its value focus, although the CEO admitted the market is “very competitive” in terms of value and loyalty.

The grocer kicked off the year by cutting prices on more than 2,500 prices, including fresh fruit and vegetables, cleaning essentials, meat, fish and everyday staples, including brands such as Kellogg’s, Birds Eye and Nestlé.

At the time Morrisons pricing and customer director, Alex Paver, said the move means “customers can trust they’re getting real value” when shopping at Morrisons.

The January price push followed cuts made to 160 items at the end of October 2025, with prices reduced on 650 everyday items throughout Q4.

“Thanks to our ‘save to invest’ programme, we are committed in delivering the best prices to our customers,” said Baitiéh.

“We are not satisfied and we will not be satisfied. This is our mindset, and we have a lot more to do and opportunities to unlock, to fund our value triangle, and for better and better customer satisfaction.”