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

The supermarket chain said like-for-like sales - excluding fuel - rose 0.2 per cent in the nine weeks to 3 January.

Analysts had expected a fall in sales at Morrisons, which has been under intense pressure from rivals. But as well as confounding these expectations, this is the first time the supermarket has reported a rise in sales for more than a year.

David Potts, who became chief executive of Morrisons in March last year, said he was pleased with the performance over Christmas. He told BBC News: 'While there is of course much more to do, we are making important progress in improving all aspects of the shopping trip.'

Potts sold Morrisons' 140 convenience stores at a loss of £30 million in September, and has also embarked on a cost-cutting and store closure programme.

Last year, Morrisons reported a 52 per cent drop in annual profits to £345m - its worst results in eight years.

The retailer also dropped out of the FTSE 100 list of the UK's most valuable companies in December.

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