Morrisons saw sales growth slow during a ‘challenging Christmas period’, although it claims to be on track to hit its 2011 profit forecasts.

Like-for-like sales, excluding fuel, rose just 0.7 per cent in the six weeks to 1 January, down on the 2.4 per cent rise from the previous quarter and lower than the 1.3 per cent rise predicted by analysts.

Dalton Philips, CEO of Morrisons, commented, ‘I am pleased that in a difficult trading environment we have continued to grow our business and have delivered another good performance in a very tough market.’

Morrisons, Britain’s fourth largest supermarket chain with over 450 stores, saw slow sales growth despite attracting an extra 800,000 customers every week over the Christmas period.

With Christmas trading coming late, analysts had expected Morrisons’ emphasis on fresh produce to benefit performance, but the figures suggest that Asda’s strong festive period has negatively impacted on Morrisons’ sales.

In a trading statement Morrisons claimed it had anticipated slow growth in 2011 and was still on track to hit profit forecasts of between £920 million and £925 million.

The firm also predicted a gloomy 2012 for retailers, with consumers remaining reluctant to spend despite the easing of inflationary pressures.

Morrisons also revealed it had made headway with the £1 billion share buyback announced in March 2011, having acquired £108.3 million shares at £316.6 million so far.