Morrisons recorded a sales boost in its third quarter.

Group like-for-like sales rose 3% for the 13 weeks ended 27 July, while total revenues were up 3.5% to £4bn.

The supermarket reported strong performance from its online arm, with double digit like-for-like growth over the period. Morrisons claimed this made it the fastest growing online grocery business in the market in Q3.

In addition, the grocer saw “strong momentum” in its new product development, including the roll out of new Fresh ranges in store this week.

Morrisons said a further £63m of cost savings had been delivered in the period, and it expected to achieve its £1bn target by the end of FY26.

The grocery giant also highlighted its successful refinancing and its further £261m reduction in gross debt.

Morrisons CEO Rami Baitiéh said: “Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets, staying true to Morrisons values of providing good affordable fresh food for all.

“As we do this, we are also managing the incremental impact of the Autumn budget and other government legislation, which has created significant cost headwinds, some of which were unexpected at the start of the financial year.”

He added: “In Q4 inflation has increased further and we are adapting and adjusting to make sure we continue to offer the best value – cutting prices for all customers, tailoring promotions and offering More Card customers even better rewards for their loyalty.

“Last week we cut prices on 650 everyday items and this week we launched over 400 new products as part of our biggest Fresh range launch for a decade.

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