Supermarket sales increased in value by 3.4% in recent weeks thanks to grocery inflation and a trend for veganism, with the 'big four' groups continuing to lose market share to discounters Lidl and Aldi.
Morrisons told staff on Thursday that it would soon be cutting roughly 1,500 store management roles as it joins other supermarkets in overhauling its workforce to adapt to changing consumer habits.
Sainsbury's and its large supermarket rivals are likely to deliver "zero growth" in 2018, warned Credit Suisse as it downgraded the orange-liveried grocer to a 'neutral' rating.
Supermarket group Morrisons reported on a much stronger than expected Christmas period, boosted by the roll-out of its new wholesale operations.
As food inflation hit its highest level in four years, Tesco and Sainsbury's enjoyed the strongest sales growth of the big four supermarkets in recent weeks, though the quartet continued to lose market share to discounters.
Tesco: Goldman Sachs upgrades to Buy from Sell.
Tesco and Morrisons were boosted by upgrades from Goldman Sachs, which upped its forecasts for both supermarkets as wages track below food price inflation for the first time in four years.
Britain's high court has accepted a compensation claim made by more than five thousand current and former Morrisons staff whose personal details leaked on to the internet, a case that could have far reaching implications for every person and business in the UK.
Food price inflation breaking through to a four-year high has helped supermarket sales in recent weeks, with Sainsbury's and Tesco both enjoying a strong period of growth, according to surveys released on Tuesday.
Wm Morrison said it had strong momentum for the Christmas trading period after sales rose in the third quarter.
Major supermarket groups Tesco, Sainsbury's, Asda and Morrisons continued to both grow sales and lose ground to discounters, with Aldi and Lidl contributing the entire grocery market's volume growth in recent weeks.
Morrisons is vulnerable to a derating if sales slow, said Berenberg as it initiated coverage with a 'sell' recommendation, with Sainsbury's preferred as the top pick for the sector.
Tesco out of the big UK supermarkets remains most at risk from the continuing rise of discounters Aldi and Lidl, Credit Suisse warned as it also cut its share price targets for Sainsbury's but lifted its target for Morrisons.
Tesco, Sainsbury's, Asda and Morrisons all continues to grow sales in recent weeks as the supermarket industry extended its run of success as grocery price inflation continues to surge.
Petrofac: RBC upgrades to Sector Perform with a target price of 500p.
Barclays reiterated its 'underweight' recommendation on Morrisons stock and trimmed its target price for it, pointing out various potentially disappointing signs in its latest set of interims.
For the first time since it began its turnaround, Morrisons posted a second consecutive half of year-on-year growth in profits as sales increased for a seventh quarter in a row on a comparable basis.
Sainsbury's is more attractive than Tesco as an investment, said Exane BNP Paribas as it downgraded Britain's biggest grocer to 'underperform' over balance sheet concerns and recommended Morrisons as a top sector pick.
UK supermarkets have had an eventual last few months, with the big four supermarkets enjoying their strongest run in four years and discounter Lidl stepping up to become the seventh largest grocer in the country.
Four supermarkets have withdrawn products from their shelves as it emerged that 700,000 eggs from Dutch farms implicated in a contamination scare had been distributed to Britain. The Food Standards Agency said the number of contaminated eggs estimated to have reached the UK was far higher than the 21,000 first supposed, and that egg salads from Sainsbury's, Morrisons and Asda, sandwiches from Morrisons, and sandwich fillers from Waitrose had been withdrawn. - The Guardian