SUPERMARKET Morrisons reported better than expected sales over the Christmas shopping period compared with a year earlier.

The Bradford-based grocer reported a 0.2 per cent rise in like-for-like sales excluding fuel in the nine weeks to January 3 in a marked turnaround after recent hefty sales declines.

Morrisons' latest figures are its first positive numbers in more than a year.

But the retailer said it would close another seven stores, following its announcement last September that it was shutting 11 stores, putting 900 jobs at risk.

It also agreed the sale of 140 M local convenience stores last September for around £25m to concentrate on its larger supermarkets.

Around 680 jobs are under threat from the latest store closures.

Morrisons said it was shutting the branches "with regret", but stressed they were not profit- making and were among its smaller outlets, at under 15,000 square feet.

It will have around 490 stores after the closures.

Chief executive David Potts said: "We are pleased with our improved trading performance over the Christmas period.

"While there is of course much more to do, we are making important progress in improving all aspects of the shopping trip."

The group said it was "beginning to attract customers back" as the Christmas performance marked its first rise in sales in around four years and confounds expectations of a sharp fall.

It follows a 2.6 per cent drop in the previous three months and comes after a disappointing performance last year, when sales fell 3.1 per cent.

Morrisons notched up the sales increase despite further falls in prices - down 3.2 per cent excluding fuel over the period - as this was offset by a significant rise in sales by volume.

It added that the number of transactions rose 1.3 per cent on a like-for-like basis.

Figures for the six weeks to January 3 showed an even better performance, with comparable sales up 0.5 per cent.

Shares in Morrisons surged by more than 10 per cent after the better-than-expected trading update, while the cheery start to festive trading from the Big Four players sparked gains across its listed rivals, with Tesco and Sainsbury's up 6 per cent and 4 per cent respectively.

Analysts were expecting sales to fall by 2 per cent at Morrisons, coming against a tough backdrop in the supermarket sector as the major players have been waging a fierce price war in the face of competition from discounters Aldi and Lidl.

Upmarket rival Waitrose last week posted a 1.4 per cent drop in sales over its six-week festive season, although Marks & Spencer's food halls fared better with a 0.4 per cent rise over the quarter to December 26.

Morrisons said its overall sales rise came mainly after an improvement from its core stores, although online sales contributed 0.9 per cent to the nine-week growth.

Strong sales of beer and wine helped Morrisons notch up its festive sales increase, while it added that its Nutmeg clothing range fared well, as did its M Signature premium food range.