Finance
UK Supermarket Morrisons' Sales Growth Slows in Tough Market
Published by Global Banking & Finance Review®
Posted on September 17, 2025
2 min readLast updated: January 21, 2026
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Morrisons reports slower sales growth amid inflation and economic challenges, impacting market share and consumer confidence.
Morrisons Experiences Sales Growth Slowdown Amid Tough Market Conditions
Morrisons Sales Performance Overview
By James Davey
Impact of Inflation on Sales
LONDON (Reuters) - British supermarket group Morrisons reported a slowdown in third quarter underlying sales growth on Wednesday, citing a tough trading environment marked by rising inflation and challenging economic conditions.
Market Share Comparison
The UK's fifth largest grocer, which has been owned by U.S. private equity firm Clayton, Dubilier & Rice since 2021, also said it was having to manage "significant cost headwinds" from higher employer taxes introduced in the government's budget last year as well as a new packaging levy.
Future Outlook and Strategies
Morrisons, which trails industry leader Tesco, Sainsbury's, Asda and discounter Aldi in UK market share, said its like-for-like sales rose 3.0% in the 13 weeks to July 27, having climbed 3.9% in the previous quarter.
“Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets," Chief Executive Rami Baitiéh said, highlighting price cuts on 650 everyday items last week.
British inflation in August held at 3.8%, official data showed on Wednesday, the highest among major advanced economies. It is being driven by higher food prices.
Retailers are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to the government's budget on November 26.
Baitiéh, CEO since 2023, is attempting to modernise Morrisons, which differs from its main rivals in that it also has its own production operations, making half of the fresh food it sells.
He said the group's market share was "stable" in the period.
However, industry data, published on Tuesday, showed Morrisons continuing to underperform the sales growth of its bigger rivals.
Market researcher Worldpanel said Morrisons' sales rose 1.4% over the 12 weeks to September 7, with its market share at 8.4%, down 0.3 percentage points on the year.
Morrisons ended its third quarter with gross debt of 3.5 billion pounds ($4.8 billion), down from 6.2 billion pounds when CD&R acquired the business.
($1 = 0.7332 pounds)
(Reporting by James Davey. Editing by Kim Coghill and Mark Potter)
Key Takeaways
- •Morrisons' sales growth slowed in the third quarter.
- •Inflation and economic conditions are impacting sales.
- •Morrisons' market share is stable but underperforming rivals.
- •CEO Rami Baitiéh is modernizing the company.
- •Gross debt reduced since acquisition by CD&R.
Frequently Asked Questions about UK supermarket Morrisons' sales growth slows in tough market
1What did Morrisons report about its sales growth?
Morrisons reported a slowdown in third quarter underlying sales growth, with like-for-like sales rising 3.0% compared to 3.9% in the previous quarter.
2What factors are affecting Morrisons' sales performance?
The slowdown in sales growth is attributed to a tough trading environment marked by rising inflation and significant cost headwinds.
3How does Morrisons' market share compare to its competitors?
Morrisons has a market share of 8.4%, which is down 0.3 percentage points from the previous year, and it continues to underperform compared to larger rivals.
4What is the current inflation rate in the UK?
British inflation held at 3.8% in August, driven primarily by higher food prices, making it the highest among major advanced economies.
5What strategies is CEO Rami Baitiéh implementing at Morrisons?
CEO Rami Baitiéh, who took over in 2023, is working to modernize Morrisons and has highlighted efforts to help customers manage their budgets through price cuts.
