Morrisons' sales slow to 3% as property deals fuel short-term profits
Morrisons has seen its sales growth slow to just 3% in its latest financial update. The supermarket chain now risks losing its position as Britain’s fifth-largest grocer to Lidl. Meanwhile, its property deals continue to draw attention after a series of high-value transactions. In 2023, four Morrisons supermarket buildings in Maldon, Stockport, Harrogate and Newcastle were sold for £110m under a sale and leaseback deal. The buyer, a holding company managed by CSC Corporate Services, funded the purchase with a £66m loan from Israeli bank Leumi. This arrangement allowed Morrisons to retain use of the sites while generating immediate cash.
The four locations brought in £9.3m in rent during 2025, an 11.2% rise from the previous year. Owners Blackstone and the Saudi sovereign wealth fund also received £4m in dividends from the deal. The firm’s profit for 2025 reached £2.2m, nearly double the figure from 2024.
Morrisons has made other major asset sales in recent years. In 2024, it offloaded its forecourt business to Motor Fuel Group for £2.5bn—a deal that accounted for roughly 95% of the supermarket’s profit that year. The company had previously been listed on the London Stock Exchange before private equity firm Clayton, Dubilier and Rice took it over in 2021.
Other retailers have followed similar strategies. Rival Asda has also used sale and leaseback agreements to cut debt. Now, Premier Inn owner Whitbread plans to raise £1.5bn by selling freehold rights to a number of its hotels. Morrisons faces growing competition as its sales growth weakens. The supermarket’s recent property deals have provided short-term financial gains, but its market position remains under pressure. With rivals adopting similar strategies, the long-term impact of these transactions is still unfolding.
