Morrisons has reported like-for-like sales growth of 3.7% excluding fuel for the 14 weeks to 4 November.

Total sales during the period rose 4.6% excluding fuel or 5% including fuel, the retailer said.

The group's three-year Optimisation Plan was progressing well and the rollout of new branding and revised Market Street presentation across its entire estate would be completed by July 2008.

“Although we are still at an early stage, I am delighted with the progress that has been made,” said CEO Marc Bolland. “We are on track to deliver our vision of being the food specialist for everyone.”

“We expect the market to remain competitive and we remain cautious on the outlook for consumer spending,” Bolland added. “However, we are encouraged by our sales growth and business performance in quarter three.”