Supermarket Morrisons said it was 'beginning to attract customers back' as it revealed a surprise rise in sales over the festive season.

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

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

Morrisons 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 Christmas performance marked its first rise in sales in around four years and confounds expectations of a sharp fall.

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

Morrisons notched up the sales increase despite further falls in prices - down 3.2pc 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 1.3pc on a like-for-like basis.

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

The supermarket chain agreed the sale of 140 M local convenience stores last September for around £25 million to concentrate on its larger stores.

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.

Morrisons said its overall sales rise came mainly after an improvement from its core stores, although online sales contributed 0.9pc 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.