Morrisons ‘bounces back' from cyber attack despite pressure on shoppers
However, it came as the UK's fifth-largest supermarket chain warned that rising inflation is driving 'subdued' sentiment among shoppers.
On Thursday, the Bradford-based grocery business revealed that group sales grew by 4.2% to £3.9 billion for the 13 weeks to April 27, compared with the same quarter a year earlier.
Rami Baitieh, chief executive of Morrisons, said he was 'pleased to report that Morrisons has bounced back strongly' from disruption linked to a cyber attack on its technology supplier Blue Yonder in November.
The retailer had previously said the incident caused slower sales growth in the quarter to January and highlighted that its recent turnaround progress was 'set back' by the issue.
The company was unable to see its product availability and stock levels for four days, leading to reduced availability in stores over the key trading period.
However, Morrisons saw sales growth accelerate from 4.2% in the previous quarter to 4.3%, with a like-for-like growth figure of 3.9%.
Meanwhile, underlying earnings grew by 7.2% to £344 million for the first half of its financial year.
Bosses said the business had seen sales supported by investment into pricing and promotions amid intense competition across the sector and pressure on customer budgets.
Mr Baitieh added: 'Against the backdrop of a challenging macro environment with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds.
'Throughout the first half we've worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.'
It comes as the company pushes on with its major turnaround plan, which has seen it overhaul a raft of store operations.
In March, Morrisons announced that 365 staff were at risk of redundancy because of plans to close some of its cafes, convenience stores, florists and fresh food counters.
As a result, it said it would shut 52 cafes, all 18 market kitchens, 17 Morrisons Daily convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.
In its latest update, Morrisons said it has launched new trials including a new-look Market Street section within its stores.
Morrisons added that it made a further £58 million in cost savings over the latest quarter, amid plans to save £1 billion by the end of the 2026 financial year.
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