Morrisons sales up for the first time in four years but seven more stores to close

Morrisons has not revealed the location of the seven stores that will close

Chief executive David Potts said that Morrisons was beginning to attract customers back to stores (Getty Images)

Morrisons has surprised the City with better than expected Christmas trading results.

The supermarket saw sales excluding fuel at stores that had been open a year or more increase 0.2 per cent in the nine weeks to January 3, making it the first time sales were up in four years.

Analysts said Morrisons sales would fall 2 per cent.

Chief executive David Potts said that Morrisons was beginning to attract customers back to stores.

"While there is of course much more to do, we are making important progress in improving all aspects of the shopping trip, and our customers tell us they are pleased with the changes," he said.

The positive results come after severe cost cutting. In September Morrisons said that it was closing 11 stores and selling off all of its M Local convenience stores at a loss of £30 million.

Morrisons' cost cutting continues, with another seven store closures announced in the results. It is not yet clear where these store are.

Morrisons market share has suffered from store closures, Kantar data shows. Its share slid 11 per cent in the 12 weeks to January 3, while Aldi and Lidl saw combined gains up 8.3 per cent from last year to 9.7 per cent.

That means one in eight Brits did their biggest Christmas shop at Aldi or Lidl.