Morrisons leads the way with an 8.2% Christmas sales jump

The Bradford-based group's stores attracted 2.2 million more shoppers than last year as it clawed customers away from more expensive rivals.

Like-for-like sales excluding fuel jumped 8.2% in the six weeks to 4 January, trumping Tesco's 2.5% and Sainsbury's 4.5%. Industry number two Asda is yet to report, but figures from market research groups TNS and Nielsen suggest it did not match Morrisons' Christmas performance.

"We are the biggest beneficiary of shoppers switching from premium to value retailers. We have gained customers from all our major competitors, particularly in the South," chief executive Marc Bolland said, adding that growth in its London stores had been double-digit.

He also reported rocketing demand for organic products, thanks to a large number of middle-class shoppers trading down. "Customers who usually shop at premium retailers come to our stores and they are amazed at what they see on the organic counter, at much lower prices than they are used to," he said.

Sales of Morrisons' value range have risen sharply. Its Market Street aisle, selling fruit, vegetables, meat and bread, has also been a star performer. The performance is all the more impressive as it compares with strong sales growth a year earlier.

Discounting has played a part, but Bolland says the group did not offer more promotions than last year, simply better ones. The retailer said it is on track to meet profit forecasts for the year ending 1 February.

But the shares today slipped11/2p to 2623/4p as Bolland remained cautious about the outlook, saying: "We expect people to tighten their belts further, but we will continue to bring out very strong promotions."

Sector experts say Morrisons is closing in on Sainsbury's in terms of market share.