MORRISONS SALES GROWTH OVERTAKES SAINSBURY'S FOR FIRST TIME IN FIVE YEARS

Sales at Morrisons grew faster than those at Sainsbury's for the first time in five years, according to market research figures from NielsenIQ. The data, covering the 12 weeks to 3 October, showed Morrisons' sales rising by 1.1 per cent, ahead of a 0.7 per cent increase at Sainsbury's. Morrisons' share of the UK grocery market stood at 8.3 per cent, down slightly from 8.4 per cent a year earlier. Sainsbury's is described as Britain's second largest grocer, with Morrisons positioned as its smaller rival. The figures mark a reversal for Morrisons, which has lagged behind Sainsbury's on quarterly sales growth for several years.

The last time Morrisons outsold Sainsbury's on quarterly growth was shortly before its £7billion takeover by a private equity firm in October 2021. Sainsbury's held merger talks with Morrisons earlier this year, but it emerged this month that the talks had been called off. Rami Baitiéh became Morrisons' chief executive in November 2023 and has led efforts to turn the business around. He said last month there was clear evidence that the strategy was delivering and that the business remained on track.

The comparison is being watched closely given the two chains' history of competing for market share and the collapse of their merger talks. NielsenIQ's figures are closely followed by analysts tracking which supermarkets are gaining or losing ground. Morrisons' market share still fell slightly even as its sales growth outpaced Sainsbury's, pointing to continued competition across the sector. Baitiéh's comments suggest the company regards its turnaround as ongoing rather than complete. Neither supermarket has made further announcements on merger talks or future sales figures.