Morrisons has reported rising sales for a second successive quarter as its recovery continues.
Having endured such a torrid time in recent years, the supermarket said like-for-like sales grew 0.7% in the three months to the start of May, compared with the same period last year. It was boosted by a 17% rise in sales of its 'Food to Go' range.
Chief executive David Potts said there was "still much to do".
"Customers are responding and satisfaction levels remain ahead of last year. We are of course pleased with a second consecutive quarter of positive like-for-like sales, which demonstrates our aim to stabilise trade is taking effect," he added.
Morrisons said prices were down 2.6% from last year. In March, it reported a £100m fall in annual profits.
On Wednesday, Sainsbury's boss Mike Coupe said its prices were 4% lower than last year. Morrisons' rival said underlying profits - which excludes one-off costs - also fell by almost £100 million as a result of lower prices.
Ed Bowsher, senior analyst and deputy editor at Share Radio, said: “Boosting like-for-like sales by 0.7% is impressive when prices fall by 2.6%. ‘Food-to-go’ items like sandwiches and crisps have also done really well with 17% sales growth. CEO David Potts is a very experienced retailer and he’s clearly making a positive impact.
“But I’m not tempted to buy shares at the current price. The supermarket price war is far from over and that means Morrisons is going to struggle to boost profit margins from here. It’s also hard to see how Potts can grow the business."