Morrisons has reported a 3.9% rise in like-for-like sales as it continues to recover from the disruption caused by the Blue Yonder cyber attack late last year.

Total sales for the 13 weeks to 27 April 2025 increased 4.2% to £3.9bn, while underlying EBITDA for the first half rose 7.2% to £344m.

The supermarket chain said its performance was supported by continued improvements across pricing, promotions, loyalty rewards and a sharper in-store range.

New trials in stores have included a revamped Market Street concept with Farm Shop influences, a stronger World Foods section and a more streamlined range.

Chief executive Rami Baitiéh said: “The renewal and modernisation of Morrisons continues at pace. During the period we commenced trials of a number of new in-store initiatives including a new look Market Street with Farm Shop influences and more added-value products; a new World Foods offer; and a tighter, sharper range which highlights innovation and newness across the store.

“Customer reaction has been very positive with Morrisons fresh food strengths and outstanding value shining through strongly.

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“We also made strong progress with the expansion of Morrisons Daily, opening 42 new franchise-owned stores in the quarter, and we see potential for hundreds more franchise-owned stores as we expand further in the growing and fragmented convenience market.

“I would like to thank all of our valued colleagues for their hard work and dedication as we continue to move forward with plans to grow and improve our business.

The retailer also made further gains in convenience, opening 42 new Morrisons Daily franchise stores during the quarter.

The total number of Morrisons Daily stores now exceeds 1,700, up 120 on the same period last year. The group said it sees potential for “hundreds more” franchise stores in the growing convenience market.

Morrisons confirmed it has now exceeded its original £700m cost saving target, delivering a further £58m in Q2.

The savings goal has now been raised to £1bn by the end of FY26. Chief financial officer Jo Goff said: “We’ve delivered a solid performance for Q2, reflecting the broad-based progress being made across the business.

“LFL sales strengthened in the period, in what was our tenth consecutive quarter of LFL growth, with positive contributions from across the business supporting growth in underlying EBITDA and a robust cash performance.

“In addition, we are successfully delivering further cost savings to enable us to continue to offset cost headwinds. Having delivered over £700m, our target has now been increased to £1 billion, with the remaining savings to be delivered over the next 18 months.”

Morrisons has also agreed a partnership with a global analytics firm to extract deeper insights from its retail data, as part of its wider drive to modernise operations and boost efficiency.