Morrisons’ like-for-like sales rose by 0.2% in the nine weeks to 3 January, but declined by -0.6% when fuel was included.
In a trading statement, the supermarket said total sales were down by 1.2% on the same period last year, following the disposal of 140 M Local stores and other supermarket closures. It also announced a consultation on a further seven store closures.
Morrisons said it was continuing its focus on simplifying and speeding up the business – with the removal of 800 head-office roles since the start of 2015/16. Other services, such as maintenance, are being brought in house.
It said restructuring and store closure costs would be around £60m, but that underlying profit before tax would be higher in the second half of the year.
Customer satisfaction levels were up from last year, the number of transactions in core supermarkets increased by 1.3% on last year, and online sales rose by almost 100%.
The company said its net financial position had improved during the period, with year-end debt guidance lowered from £1.9bn to £1.65-£1.8bn.
